A new market trend may be emerging as oil prices, bond yields and precious metals have moved higher simultaneously, according to economist Peter Schiff.
Oil, Bond Yields And Gold Climb Together
In a Monday post on X, Schiff said oil and bond yields rose alongside a rise in precious metals, reversing the “negative correlation that’s dominated trading since the war broke out.”
The 10-year Treasury yield has risen 6.8% to $4.42 since the start of the year, while the gold price climbed 9.2%. The S&P 500 is up 8.3% at the time of writing.
The ETFs tracking the S&P 500, such as iShares Core S&P 500 ETF (NYSE:IVV), Vanguard S&P 500 ETF (NYSE:VOO) and SPDR S&P 500 ETF Trust (NYSE:SPY), also moved up. These ETFs have also gained over 8% since the year began.
Why Investors Need To Worry
The rise in these three asset classes together may reflect growing investor concerns over persistent inflation, fiscal instability and weakening confidence in traditional financial assets.
Schiff framed the shift as a regime change, saying that this could signal a new broader market trend that stock investors should worry about.
Schiff recently warned about the potential for 30-year Treasury yields to accelerate towards 6%, a move he indicated would happen much quicker than previous increases. In a post last week, Schiff stated, “the move from 5% to 6% will be much quicker than the move from 4% to 5%,” attributing this rapid shift to the U.S. national debt, which recently hit a record $39 trillion.
He also warned that the current oil prices may not return to pre-Iran war levels anytime soon amid escalating tensions between Washington and Tehran.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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