Rise in stocks, rise in bonds, rise in gold, rise in bitcoin

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Investment stock exchange

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It is not a picture of the markets that you see too often.

When 4 major asset classes all tend to increase in the same month, something unusual happens. Typically, at least one is down when the other is up, but not this month. Even the big cryptocurrency has recovered after suffering a terrible May and a weak June.

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Normally, you could probably say with some precision that when stocks go up, bonds are sold. You could argue that gold rallied in the face of inflation fears and bonds were sold as interest rates rose, but bonds rallied in July as rates fell even though fears inflation seemed to push gold up.

Sometimes it is better not to find an explanation. Sometimes the explanations offered don’t make much sense. You’d better just look at the price charts, find a trend, and identify likely support and resistance levels. With that in mind, let’s try.

Here is the daily price chart of the Standard and Poors 500:

S&P 500 Daily Price Chart, 7 30 21.

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The uptrend from the pandemic lows of March 2020 continues to climb higher and higher. The S&P 500 started July at around 4,360 and ended the month at 4,395, nothing spectacular but it counts as a rise. If this continues, 2021 will count as an incredible year of gains. Yes.

Take a look at the NASDAQ-100 Daily Price Chart:

NASDAQ-100 Daily Price Chart, 7 30 21.

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It’s the index that reflects the movement of the big names in tech and social media. July started just above 14600 and closed at 14959. Again, not spectacular, but better than staying the same or heading the other way.

The daily price chart of the benchmark Treasury bond index looks like this:

IShares 20+ Year Treasury Bond ETF Daily Price Chart, 7 30 21.

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If you bought bonds in early July and sold them at the end, you made money. The iShares 20+ Treasury Bond ETF started at 144, climbed to 152 mid-month and closed at 149.

Here is the daily benchmark gold ETF price chart:

SPDR Gold Share Daily Price Chart, 7 30 21.

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SPDR gold stocks move step by step with the price of gold. This month the price chart starts at 166 and ends at 169. It is a profitable month of July for those betting on inflation through the precious metal.

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The daily Bitcoin price chart looks like this:

Daily Bitcoin Price Table, 7 30 21.

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After a devastating fall from April to June, the most well-known cryptocurrency found its footing and rallied back to the top in July. Bitcoin started at 34,000 and ended the month at 40,131.

Every asset class rising at the same time in a single month is different. It must have happened before but I can’t remember when, if it happened. There must be a lot of money around finding a home any home these days.

No investment advice. Do your own research and always consult a registered investment advisor before taking any action.

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