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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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From: elmatador6/12/2025 1:02:16 AM
   of 13775
 
Bond yields are going up.

First look at it as Supply and Demand

1) In 2000 there were too many bonds offered in the market and yields were high as governments needed to offer higher yields to attract buyers.
Or there was too little money seeking the available bonds at that time

2) From there on bond yields went consistently down. Which was the reverse of the base year 2000. There were too few bonds being issued chasing many takers, that accepted lower yields.

3) That low bond yield phase hit the bottom in 2020 , persisted for 2 years and then reverted..

Then there is risk.

In 2000 the world was on the verge of a crash of the tech bubble. It was a disaster waiting to happen. That investors' perception of risk sent bond yields high
"Irrational exuberance" is the phrase used by the then- Federal Reserve Board chairman, Alan Greenspan, in a December 1996 speech given at the American Enterprise Institute during the dot-com bubble of the 1990s. The phrase was interpreted as a warning that the stock market might be overvalued

Today we are in Tech Bubble 2.0. Investors are seeing the same 2000 once again. Yields up.

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