The result of the Bank of Japan’s blatant currency manipulation is a stronger dollar and flight to treasuries, both deflationary for citizens of this great steak’d nation.
Look for the dollar to continue to make gains v the yen, providing the robot lovers with the ammunition they need to unfairly compete with our exporters.
Interested in higher stocks? Fugetiboutit. You’re not getting shit, with TLT pressing new highs. As a matter of fact, you should be fading this rally–as it is built upon the empty skulls of brainless day traders.
Sure, anything could happen–I suppose. Then again, maybe it doesn’t. The point is, stocks can’t rally when U.S. treasuries are removing liquidity from the marketplace. The negative rate craze, which seems to be all the rage in Europe and Japan now, is lunacy and highly deflationary and detrimental to your financial well being.
Central governments love it, since they’re able to build bridges to nowhere with your money–that you PAY THEM FOR TO BORROW.
This is, by far, the greatest robbery and tax ever levied against the people on planet earth. Nevertheless, having 25% of my assets in TLT, I am happy for it.
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The main reason I am bullish on stocks is because I believe the dollar will go lower in the short and medium term.
Today the dollar is sharply higher and stocks are rallying.
I take this as a great sign, that stocks can rally in the face of certain economic destruction.
I guess that makes me an optimist.
or a moron
No doubt about that.
30yr yields have strong resistance at 3.63, 12bps lower than today’s yield. This is not 2014.
Someone seems to think the s&p should be above 1900 but they keep banging their head against the ceiling.