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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 (51677)1/27/2006 11:41:56 AM
From: Rarebird  Read Replies (3) | Respond to of 110194
 
>>TNX also has ignored the weak GDP numbers.<<

Not at all. We are in a very strong inflationary environment, which is bullish for equities.

>>A bearish signal for bonds (and soon after stocks) IMHO.<<

I could see a spike in the 10 year bond causing problems. But that won't happen until the Fed stops raising rates. Till then, I continue to see clear sailing for small cap stocks.

Message 22098553

It depends on how big of a spike we get. Some of that bond money will get transferred to equities. That's bullish. Moreover, increased business investment will cushion the decline in consumer spending somewhat:

""The category that covers non-defense capital goods excluding aircraft was up by a strong 3.5 percent in December following much smaller gains in November and October, indicating that businesses are boosting their investment plans."

biz.yahoo.com

Once Dovish Ben takes over, every voting member of the FOMC will have been handpicked by President Bush.

Surely, you know what that means.