China’s Treasury holdings hit lowest level since 2001. The rotation into Gold is no longer a theory.

We are watching a structural shift happen in real-time. ​China has reduced its US Treasury holdings to 7.3%, erasing half of what they accumulated between 2000 and 2010. Simultaneously, the PBOC has bought gold for 15 consecutive months. ​I’ve seen cycles like this before, but the speed of this decoupling is notable. ​Why this matters for equities: If the second-largest foreign holder of US debt continues to step away, the demand vacuum has to be filled. this puts a natural floor under bond yields. As long as yields remain sticky/elevated due to lack of foreign demand, the valuation multiples for the S&P 500 will remain under pressure. ​Don't ignore the macro. The smart money is moving to hard assets.