With the August numbers in the books, let's jump right into the charts!

Let's start by looking at yields. The yield for a 10-year US Treasury bond rose to over 3% while the Copper/Gold ratio stayed stable. M2 Money Supply growth fell to 5.28% and US inflation stabilized around 8.52%. With rising yields and stable inflation expectations, Real Yields rose, which was negative for Gold prices.

Gold mining stocks fell faster than the metal that they produce, leading the XAU/Gold Ratio lower. Silver also underperformed gold and the Gold/Silver Ratio rose along with the US Dollar index.

With yields rising for all maturities, the US Yield Curve is still in deeply negative territory - signalling the risk of a economic recession. Credit spreads remain low, except for mortgages, for which they got close to the 2008 and 2020 highs.

With rising mortgage rates, Home Prices took a bit of a hit after a decade of rising prices. With these developments in Gold and real estate, for the first time since 2009, an average house in the US costs once again more than 300 ounces of Gold.

Looking at different valuation metrics for the US stock market, the Wilshire 5000 to GDP Ratio is at 159%, the Dividend Yield at 1.61%, the Shiller PE Ratio at 29.72, and the Price Earnings Ratio at 20.04. 
With a Shiller PE Ratio of 29.72, US equity valuations are nearly twice that of the rest of the world (source).

Let's finish this month's newsletter with a look at crypto. Shortly before the long awaited ethereum upgrade, which will change the blockchain's consensus mechanism from proof-of-work to proof-of-stake, the Ether/Bitcoin Ratio is itching closer to a potential break out above the historical resistance level of 0.08 BTC.

This month's newsletter is sponsored by Green Crypto Research. Green Crypto Research (GCR) is a non-profit association based in Zug, Switzerland, that specializes in evaluating the sustainability of cryptocurrencies. The organization was founded in May 2021 and developed the world's first and to date only ESG rating for cryptocurrencies. With that, GCR enables professional investors, asset managers and crypto exchanges to offer sustainable crypto solutions to their clients.

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