Just to play Devil’s advocate here, in light of my previous CAT post. We see the markets are record highs. The Fed menacing us with higher rates. Employment, seemingly, full. Yet, here we are with 10yr yields at 2.17%. How in the fuck are all these things happening at the same time?
Robust economic activity, while deflationary pressures mount, as evidenced by bond yields?
I have 10% of my assets in TLT, aka “The Ark”, and it looks like it wants higher.
In the past, economic activity guided yields. In a post apocalyptic world (2008), central banks control yields and cast a perversion upon traditional economic theories. That’s my take on it.
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Algo’s were just buying any dip regardless of what the asset class or even direction is?
ummm….. because the Feds QE basically hasn’t stopped yet.
Don’t cut that post short then…. what’s your view on how this is gonna resolve?
It’s just a big liquidity rally in the absence of alternatives, isn’t it? We had those runs before, passive investing adds another leg to it, hence the same shit gets bid since a while.
POTUS says it’s great. So just thank him and stop collaborating with the Deep State.
10-Yr headed for Sub 2% Yields, once again. $USD headed 94 (after s/t bounce to upper 98’s) then 91 and ‘possibly’ 88.
QE sir
any more question ?
Somebody is wrong. They both can’t be right. The safer bet is the bond market has it right. However, the stock market could give a shit when there’s money to be made chasing stocks higher.
Ergo, you can still make money even if you’re wrong about the state of the economy.
Central banks not only control yields, they also control markets. I mean, what does it really cost, in effort, these vipers to create digits, call them dollars, and buy, for themselves and their owners/shareholders, real assets, the sweat and blood of all individuals that sacrificed their time and lives to create companies, products and services? Big FAT nothing. And we let “them” get away with it and even cheer them. Pretty stupid..!
What show is that pic from?
Dumbfuck Noah movie
This the exact situation where bonds and equities crash at same time, while dollar explodes.
Rut is going back to thursday lows.
Time to disembark from the ark and pick up some PM