This is some blasphemous shit. Julian Emanuel, clown from UBS, is bullish on gold and stocks–but thinks yields will rise because the economy is getting better. Hello, the economy has been ‘getting better’ since February and TLT is hitting new highs.
Why is TLT hitting new highs? It has nothing to do with economic conditions. Instead, it’s the perversion being purported in Japan and in the ECB with negative rates and ultra-low long dated yields. Have a look.
German 30 yr, yielding 0.62%
Japanese 30 year, yielding 0.30%
U.S. 30 year, yielding 2.48%
Get the picture? Tell me, who in their right minds is gonna take a JGB or a Bund over a Treasury, unless of course you’re a Japanese or German institution or bank mandated to buy them? This arb is live and the US 30 is the only game in town.
Having said that, Julian makes his argument, suggesting stocks will rise, but utilities and consumer staples are extremely vulnerable to pullbacks on any move higher in yields. He’s calling for two (count ’em) Fed rate hikes in 2016.
Fucking delusional.
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I’m in staples and treasuries til I die come at me bro
Turd browned out charts indued
What a maroon. I had a similar battle with some clown on Seeking Alpha just this morning.