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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 694.07-0.2%Jan 29 4:00 PM EST

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To: Zincman who wrote (53472)8/11/2013 10:51:44 PM
From: Hawkmoon  Read Replies (1) of 222611
 
Normally a move down in the bonds should increase investment into equities.

But I'm not sure this time, since higher interest rates will make it even more difficult for corporations to turn the kind of profit they've been enjoying in a low-interest rate environment.

And then there is the problem with the national debt, which will increase the need to raise taxes to cover the increased interest payments.. or to increase austerity measures to remain below the cap.

Could be that we see Stagflation result.. Hard to say.. But the market certainly doesn't like the idea of the Fed tapering off of it's QE efforts. And the money will have to come from somewhere to compensate for any decrease in the Fed's buying of Treasuries.

Which, in my conspiratorial mind, suggests a stock market panic which drives $$$ into treasuries..

Hawk
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