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

To: Jon Koplik who wrote (17784)	2/16/2016 7:27:05 PM
From: 3bar	Read Replies (1) \| Respond to of 33421

Interesting invest style Jon . Got a good laugh out of that . Tks for the post .

To: Jon Koplik who wrote (17784)	3/4/2016 9:14:51 AM
From: John Pitera	3 Recommendations Recommended By 3bar Kahlua roguedolphin Read Replies (3) \| Respond to of 33421

Here is the 10 year yield of the Japanese Government bond Here is the 10 year German Bund yield Here is the relative performance of the Japanese and the German 10 year debt Notice the Massive swings in the relative portfolio's of these debt instruments with Interest rates so low. This is the type of massive magnitude swing that can blow up the portfolio's of global banks, insurance companies, pension funds, sovereign wealth funds, major multinational companies. This is bond rate volatility that is completely out of control... and as interest rate spreads get tighter and tighter it magnifies what are really very small absolute basis point changes in yield. A year's worth of Fund earnings can vanish in an afternoon. here is the movements in the EUR/JPY cross rates..notice the hugh volatility Here is the EUR/CHF cross rate and as you can see we saw the exchange rate move a record 30% in 15 minutes on January 15th 2015 even though the Swiss France was 44% overvalued at the time. These type of move can destroy the yearly profits of multinationals...... we also saw a very large move in the USD/CHF rate in 15 minutes. Notice this discussion is leaving China out of the picture... in terms of risks. It is also leaving out the 100 trillion dollars of Global Energy sector reserves out of the discussion. Just study the chart of the Magnitude of change and the rapidity of the change in Germany and Japan and their rates and then look again at the types of moves that are occurring in major currencies. Global Financial Risk Managers do not have models or methodologies to hedge and prepare for swings of such extreme magnitudes. Who really thinks that this chart is not something to be gravely concerned about? and hence the move to precious metals. The percentage moves in the Bunds and the JPG's is the single most under reported story of the Decade. JJP