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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: John Pitera who wrote (13486)1/18/2013 1:49:29 AM
From: John Pitera5 Recommendations  Read Replies (4) | Respond to of 33421
 


World's Grandest Bubble just popping..?

The global money markets are very dysfunctional. The Credit markets have issues. Every Pension fund, from a city, county, state level, all the University endowment funds and so many other institutional investors are unable to get an 8% returrn that they have predicated there futures on. With The Yield curve so incredibly low and flat , unless you vastly overallocate to equities... hence setting up the third bubble since 1995 in equities.

Although there is a very credible case that the 10 year note yield has been in an ascending triangle since the summer 2012 lows and we have had an upside break out, where yields are actually set to rise Potentially ending the secular bond bull market that started in 1980.

When the FED is no longer able to keep the long end of the bond market under control ..... it will most likely turn into a tsunami of Global repercusions and when interest rates start the long trek upward it destroys the ability of the Government to pay the interest on the structural debt. Everyone who is long bonds gets a depreciating asset.

Is the biggest bubble in history ending? The Bond market bubble that is..... When the Music is over you ..... turn out the lights.

You all are living in truly historic times..... and you are watching the launch off of the pad.

John