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

To: John Pitera who wrote (17945)	3/16/2016 4:36:32 PM
From: robert b furman	2 Recommendations Recommended By 3bar John Pitera Respond to of 33421

The medicine being served is to pay down debt (which has accumulated over the decades to be excessive and at max). If savers would get a good return - they'd save while keeping debt repayment down. Instead low rates or negative rates focus like a laser on debt reduction. In between if you are debt free - you can chase up the yield curve on debt / junk bonds which I think are at a 30 year bubble or go where every body has been burned before equities. Equities are missing fast price mark ups - once that phase begins - it will be cool to get rich on stocks and the shoe shine boy will be giving tips. In between 5-6 % dividend yield on dividend aristocrats are available. That's pretty good in this world. When if this market gets to be a blowoff all stocks will be profitable and it will be time to get out. Hopefully by then inflation will be high and the short term rates will invert as bonds pay 7 % plus - we're a long way off from that. Debt needs to be paid down and then a credit expansion will show us the good times. The 1950 showed us this low growth and rates for over 10 years. In between enjoy equity dividend rates that are risky but reliable. Bob