Global Outlook Mad, Mad, Mad, MAD World: News in Charts

byFathom Consulting via Thomson Reuters

Alarm bells are ringing for economic fundamentalists such as Fathom Consulting.

Asset prices look increasingly out of step with fundamentals, and in some cases they look downright bubbly. And other geopolitical developments are similarly alarming. One might even describe them as

Mad:

Equity prices in developed economies, and specifically in the US, are more than one standard deviation higher than their long-run average in relation to nominal GDP.

Mad:

The Nasdaq has again played its part, posting an even greater degree of fundamental overvaluation than the S&P 500. Its degree of overvaluation in relation to nominal GDP is now close to its dotcom bubble high.

Mad:

Government bond prices across the developed world are at all-time highs. Bond prices have been increasing consistently since the 1980s, with a series of global shocks driving that move.

Total central bank assets across the developed world now stand at over $14 trillion, having increased by about $10 trillion since the recession

This is genuinely uncharted territory: here be dragons!

Full article byFathom Consulting can be read on Thomson Reuters

News andCommentary

Gold prices touch two-week high amid subdued U.S. dollar (Reuters.com)

Gold extends gains after latest Fed meeting minutes (Reuters.com)

Dollar Falls, Stocks Hit Record as Fed Seen Dovish (Bloomberg.com)

Russian central bank may boost gold trading on Moscow exchange (Reuters.com)

China will ‘compel’ Saudis to trade oil in yuan Economist (CNBC.com)

3 Reasons World Could Turn Its Back on the U.S. Dollar (CNBC.com)

Bitcoin Is Evil and a Bubble; Higher Taxes Are Good Krugman Interview (Bloomberg.com)

THE UNKNOWN FUNDAMENTAL: This Will Push The Silver Price Up Much Higher (SilverSeek.com)

Yellowstone Supervolcano May Rumble to Life Faster Than Thought (NationalGeographic.com)

Scientists find gold worth $2 million in Swiss sewage (CNN.com)

Gold Prices (LBMA AM)

12 Oct: USD 1,294.45, GBP 977.96 & EUR 1,092.26 per ounce

11 Oct: USD 1,290.20, GBP 978.62 & EUR 1,091.90 per ounce

10 Oct: USD 1,289.60, GBP 977.77 & EUR 1,094.61 per ounce

09 Oct: USD 1,282.15, GBP 976.23 & EUR 1,092.01 per ounce

06 Oct: USD 1,268.20, GBP 970.43 & EUR 1,083.93 per ounce

05 Oct: USD 1,278.40, GBP 969.28 & EUR 1,086.51 per ounce

04 Oct: USD 1,275.55, GBP 960.87 & EUR 1,085.11 per ounce

Silver Prices (LBMA)

12 Oct: USD 17.20, GBP 13.06 & EUR 14.50 per ounce

11 Oct: USD 17.15, GBP 13.00 & EUR 14.51 per ounce

10 Oct: USD 17.12, GBP 12.98 & EUR 14.53 per ounce

09 Oct: USD 16.92, GBP 12.86 & EUR 14.41 per ounce

06 Oct: USD 16.63, GBP 12.73 & EUR 14.20 per ounce

05 Oct: USD 16.66, GBP 12.64 & EUR 14.19 per ounce

04 Oct: USD 16.83, GBP 12.67 & EUR 14.29 per ounce

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