Comments on: Market Overview 6-26-16 (video)

By: rsotc

rsotc — Mon, 27 Jun 2016 15:15:19 +0000

In reply to pkm48193. "People expect there will be European bank failures, Deutsche Bank, Credit Suisse, that will be blamed on Brexit, not the central banks." ... so very true & you make a lot of good points above. Thx for sharing your thoughts.

By: rsotc

rsotc — Mon, 27 Jun 2016 14:44:18 +0000

In reply to joefriday. G-luck on those bond shorts. FWIW, probably best to focus those shorts on the low-grade (aka junk: JNK/HYG) & investment grade (LQD) corporate bonds vs. treasuries as they won't see as much of a flight-to-safety bid if things start to get really ugly.

By: joefriday

joefriday — Mon, 27 Jun 2016 03:33:50 +0000

Randy.. I Agree. I am seeing the same thing..and why I am short Bonds.. It seems like there may be a new paradigm in play where all assets classes go down together… crazy but guess we are starting to the effects of an FED/ECB manipulated market.

By: pkm48193

pkm48193 — Mon, 27 Jun 2016 01:16:00 +0000

In normal markets, bonds – up, stocks -up; bonds -down, stocks – down. In manipulated markets (when money is being expanded at too fast a rate and the FED is blowing bubbles): risk-on, risk-off. Remember, the Fed can monetize the bond market to keep yields down. If they keep printing and if the Fed follows the EU’s purchasing of corporate bonds, real bonds yields will go even more negative, the dollar will decline and foreign bond holders will dump treasuries. The Chinese are already converting their foreign reserves into gold. We are approaching the end game. You are correct, we are probably beginning a secular bear market. People expect there will be European bank failures, Deutsche Bank, Credit Suisse, that will be blamed on Brexit, not the central banks.