Markets Make a U-turn…

Is the run towards safe-haven assets over? Major threats to financial markets certainly haven’t disappeared overnight. But it appears as though risk-appetite has returned that quickly. Of course, it can also vanish just as quickly. Either way it’s still something that needs to be monitored.

And while risky plays have drifted higher, the biggest talk has been of the U.S. dollar’s rise over the last two weeks after stabilizing above all-time lows. We have to wonder whether the buck is carving out a notable bottom. We’ve wondered that same thing many times over the last year of the dollar’s bear market. And each time the dollar’s brief rally was quickly squashed.

But there’s always something new to consider. Below are three charts that make us want say “It’s different this time.”

S&P 500 – Bottom: March 17th

Gold – Top: March 17th

Dollar – Bottom: March 17th

Risky assets rising? Safe-haven plays falling? The dollar appreciating?

Perhaps the markets are a good ways ahead of the fundamentals. And perhaps we’ve already witnessed a major turning point.