World Uncertainty Index hits record high, surpassing 2008 level

Core Insights - The World Uncertainty Index (WUI) has reached an all-time high, surpassing levels seen during significant historical events such as the September 11 attacks, the Iraq War, the global financial crisis, and the COVID-19 pandemic [1][3] Economic Indicators - The WUI measures uncertainty by counting the frequency of the word "uncertainty" in country reports from the Economist Intelligence Unit (EIU), indicating that higher mentions correlate with a higher uncertainty index [2] - Increased uncertainty typically leads to reduced investment, slower economic growth, and heightened financial volatility [3] Market Performance - Despite the record high in the WUI, major market indicators like the NASDAQ Composite, Nasdaq 100, and S&P 500 are achieving new record highs, suggesting a disconnect between market performance and perceived uncertainty [4] - The U.S. dollar index is at its lowest point around 95, indicating a loss of confidence in the fiat currency, which has prompted traders to invest in precious metals [5] Precious Metals and Bitcoin - Gold and silver have reached new record prices, with gold surpassing $5,500 per ounce and silver exceeding $100 per ounce, as investors seek safe-haven assets amid dollar debasement [5] - Bitcoin has not capitalized on the dollar debasement trend recently, despite being viewed by some as "digital gold" and a hedge against inflation [6][9]