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

To: Paul Kern who wrote (54081)	2/17/2006 12:01:58 PM
From: russwinter	Read Replies (2) \| Respond to of 110194

You have it backwards. When there is economic weakness, investors head for safety and bonds go up. Returns -- that's interest rates -- go down.> That's the cognoscenti playbook, but I couldn't disagree more. Spreads and yields are distorted, (see my last post), and therefore do not reflect true risk. We will see a large and potentially historic credit spread blowout, sending all these bond prices, and across all spectrums, dramatically lower (yields higher). A weak economy will amplify that.