Fear Gauge Sounds Alarm

Chart Below: 20-year treasury index (TLT) over the Canadian dollar (FXC)

Click on Chart or HERE for Larger View

Following a reckless resumption of risk appetite last week….

….(perhaps led by an erroneous interpretation of Euro strength by algo computers? See: Biggest Market Headfake ever for an interesting take) the fear gauge is resuming alarm today.

This updated chart of the 20-year treasury index (TLT) over the Canadian dollar (FXC) is one of the many which we have found to be instructive over the years. Last week’s drop in this risk barometer and rebound today bear an eerie resemblance to similar action we noted in the late fall of 2008. For an excellent update on where we really are at with the European banking crisis, see John Hussman’s piece this morning: Europe: Just Getting Warmed Up.

About Danielle

Portfolio Manager, attorney, finance author and a regular guest on North American media, Danielle Park is the author of the best selling myth-busting book“Juggling Dynamite: An insider’s wisdom on money management, markets and wealth that lasts,” as well as a popular daily financial blog:www.jugglingdynamite.com

Danielle worked as an attorney until 1997 when she was recruited to work for an international securities firm. Becoming a Chartered Financial Analyst (CFA), she now helps to manage millions for more than 200 of North America’s wealthiest families as a Portfolio Manager and analyst at the independent investment counsel firm she co-founded Venable Park Investment Counsel Inc.www.venablepark.com. In recent years Danielle has been writing, speaking and educating industry professionals as well as investors on the risks and realities of investment behaviors.

A member of the internationally recognized CFA Institute, Toronto Society of Financial Analysts, and the Law Society of Upper Canada. Danielle is also an avid health and fitness buff.