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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Crimson Ghost who wrote (34190)6/8/2005 1:52:37 PM
From: John Vosilla  Respond to of 110194
 
That could apply even more to housing at this point.



To: Crimson Ghost who wrote (34190)6/8/2005 2:53:36 PM
From: mishedlo  Read Replies (1) | Respond to of 110194
 
Junk bonds are lending more support to the market than treasuries IMO.
Far more.
That is what is fueling all the buybacks and mergers at absurd prices.

Mish



To: Crimson Ghost who wrote (34190)6/8/2005 2:55:04 PM
From: mishedlo  Read Replies (1) | Respond to of 110194
 
Declining bond yields have served as a major source of support to the stock market in times of trouble. But I suspect we are nearing the point where bond yields are so low that they will not drop much further (if at all) during the next stock correction absent a truly dramatic plunge in the market.

The 10-yr is ultimately headed to 3, perhaps even 2 IMO

Mish