06 May 2021

Stocks and Precious Metals Charts - Fed: Asset Prices Vulnerable To Significant Declines


"Rising asset prices are posing increasing threats to the financial system, the Federal Reserve warned in a report Thursday.  Fed Governor Lael Brainard said the situation bears watching and points up the importance of making sure the system has proper safeguards. 

'Asset prices may be vulnerable to significant declines should risk appetite fall,' the central bank said."

Jeff Cox, CNBC, Fed Cautions on Stock Price Vulnerability


Gold and silver had big moves higher today, taking on key resistance at breakout levels. 

The major stock indices went out on the highs.

The Dollar declined.

The VIX dropped to recent lows.

There will be a Non-Farm Payrolls report tomorrow.

The markets traded as though they are anticipating a weaker than expected number, which will be dovish and friendly for maintaining lower interest rates.

At the end of trading there was a news flash that says that the Fed warns that asset valuations 'may be vulnerable' if risk appetites should decline.

Let's see how the markets digest that eye-opening, ass-covering admission by the bubble-meisters.

Have a pleasant evening.