U.S. Stocks, Bonds, and Currency Plummet! Danish Pension Fund "Dumps U.S. Assets," Gold Soars
A major financial shock hit US markets on January 20, with stocks, bonds, and the dollar all falling sharply. The Dow dropped 1.76%, the S&P 500 fell 2.06%, and the Nasdaq declined 2.39%. The 10-year Treasury yield surged to 4.3%, and the dollar index fell below 99. European markets also fell, and even Bitcoin dropped below $90,000.
The turmoil was triggered by geopolitical tensions after former President Trump expressed interest in acquiring Greenland and threatened tariffs on European countries that opposed the move. In response, the EU considered retaliatory tariffs on $93 billion of US goods.
In a significant move, Danish pension fund AkademikerPension announced it would sell all its US Treasury holdings—around $100 million—citing unsustainable US fiscal policies and Trump’s threats toward Greenland. Other Danish pension funds also reduced exposure to US assets.
As investors fled dollar assets, gold soared to a record high above $4,800 per ounce, while silver also surged. In contrast, cryptocurrencies fell sharply. Central banks, including Poland’s, are increasing gold reserves as a hedge against uncertainty.
Ray Dalio of Bridgewater warned that Trump’s policies are sparking a "capital war," undermining confidence in the dollar’s role as the global reserve currency. Goldman Sachs noted that recent US actions have damaged the perceived safety and predictability of US assets.
marsbit01/21 02:20
