Before the bell:  Dollar Investments Keep Bleeding

Golden times—but not for everyone. Are Europeans starting to lose trust?

The Easter weekend did not bring a resurrection for Wall Street. On the contrary, the once-revered American trio of the dollar, stocks, and government bonds went back on the chopping block. The dollar dropped more than 1% against a basket of major currencies, the S&P 500 index fell 2.4%, and ten-year U.S. Treasuries took a hit, sending yields 8 basis points higher to 4.42%. Late last week, after the Fed held interest rates steady, Trump had already expressed his dissatisfaction. Over the weekend, he lashed out again at Fed Chair Jerome Powell. Some analysts now warn that Trump’s threat to fire Powell should be taken seriously. Of course, confidence takes a hit when a president undermines the central bank’s independence. Big tech stocks like Nvidia (-4.5%), Meta (-3.4%), and Tesla (-5.6%) were once again among the biggest losers. UnitedHealth Group (-6.4%) continued its steep descent, as did investment firm Blackstone (-7.8%). The bright spot? Netflix (+1.6%), still riding high after its stellar earnings last week.

Markets in Asia are opening mostly flat today. Belgium’s National Bank and the European Commission will release new consumer confidence data for Belgium and the eurozone. It remains to be seen whether Trump II’s rhetoric and U.S. import tariffs are already dragging sentiment down on this side of the Atlantic. Pre-market earnings today include Tesla, GE Aerospace, index provider MSCI, and oil services company Halliburton.

Gold and Gold Miners

The price of gold surged 2.5% yesterday to 3,420 dollars per ounce. This morning, the precious metal is climbing even higher in Asia. Gold is thriving on the uncertainty stirred up by the new U.S. administration. Serious investors aren’t laughing at the fact that the U.S. president is starting to resemble Recep Tayyip Erdoğan. The Turkish dictator famously pressured his central bank to slash rates even as inflation skyrocketed. Now that the U.S. is no longer seen by many as a safe haven, gold is shining as an island in a stormy geopolitical sea. With energy prices also falling, the profit leverage for gold mining companies could kick in. Investors can spread risk by using ETFs like the VanEck Gold Miners or the higher-risk VanEck Junior Gold Miners.

Defensive Pick: Sipef

The quarterly results from palm oil producer Sipef came and went last week with little fanfare. With production up 18%, the company performed better than last year, when a volcanic eruption and poor weather weighed on yields. Palm oil prices remain strong, pointing to solid revenue and profit growth this year. Long-term prospects for palm oil also look good due to the high yield of palm plantations. As the global population grows, so too does the need for food and energy. At the same time, it’s increasingly difficult to create new plantations without deforestation. Add to that the fact that Sipef remains cheaply valued, trading at less than 10 times earnings and below book value.

Did you know…

that silver hasn’t kept up with gold’s rally? Yesterday, gold rose 2.5%, while silver only gained 0.6%. Since the beginning of the year, gold is up 30%, while its “little brother” has climbed just 13%.

This article was translated from Dutch and was originally published on Spaarvarkens.be.