From Silver to Asia Tech, Wall Street’s Hot Trades Are Unraveling
This article is for subscribers only.
The red-hot rally across metals, Asian tech stocks and emerging markets that dominated Wall Street at the start of the year is now going sharply in reverse.
While some of the declines in precious metals showed signs of moderating early on Monday morning, the size of the losses is one for the history books. In just three days, silver has wiped out about 30% of its value. Gold, which topped $5,500 an ounce last week, is now down to $4,750.
“The bottom line is that the trade was way too crowded,” said Robert Gottlieb, a former precious metals trader at JPMorgan Chase & Co. and now an independent market commentator.