By Michael Snyder, on December 4th, 2014 Are we about to see U.S. stocks take a significant tumble? If you are looking for a “canary in the coal mine” for the U.S. stock market, just look at high yield bonds. In recent years, almost every single time junk bonds have declined substantially there has been a notable stock market correction as well. And right now high yield bonds are steadily[...]
Tag: bonds
Here We Go: Yen Goes Parabolic, Begins to Hyperinflate
The Japanese yen is now collapsing. If the yen goes “super-nova” – i.e. collapses - it could bring down the U.S. The U.S. QE/Keynesian Ponzi scheme relies on Japan to help keep the scheme together. The yen is beginning to hyperinflate and it is now entering “parabolic” mode. First, this will cause the Japanese banks to implode because they’re loaded up with Japanese stocks and[...]
Santelli Goes Ballistic: “I Feel Like I’m Living In A Cartoon” – Video
Having noted rather pointedly that "there's a subsidy in the marketplace that's worked out definitely to those that are holding equities," Santelli warns, when The Fed removes it, "it creates a problem for equities." However, when he is asked about the disconnect between the bond market (rates) and what The Fed is telling us, Santelli rightly explodes, lambasting the 'Hatzuis' of the world, "if[...]
Here’s What Central Bankers Will Do Next
by Bill Bonner Worse Off We’ve been meaning to write about what hasn’t happened yet. Not that we claim any knowledge of tomorrow or the day after. But we can look at the present. And here’s a guess about where it might lead. The middle classes – aka “the voters” – expressed themselves last week. They have been sorely used and they know it. The biggest money-fabricating program of[...]
Central Planners Are In A State of Panic – Japan’s Black Swan Flaps its Wings
by Chris Martenson The central planners are in a state of fear and panic. They are trying everything and anything to create market validation for their policies, watching with trepidation as their favored economic metrics fail to respond to all of their frenzied efforts. They are so far over the tips of their skis right now that there's nothing they won't do. They've summarily thrown granny[...]
QE Might Be a ‘Toxic Legacy’ Poisoning America – Financial Times
By John Morgan Uneasiness is mounting about what some analysts view as a "toxic legacy" left behind by the Federal Reserve's unprecedented quantitative easing (QE) program and the towering debt it is leaving behind. When the Fed unveiled its ultra-easy monetary policies 2008, the aim was to spawn so much liquidity that investors would be willing to venture out of safe harbors and into riskier[...]
Why the Fed Will Launch Another Round of QE – Economist Richard Duncan
In November 2002, Fed Governor Ben Bernanke introduced the concept of Quantitative Easing to the world. In a speech entitled “Deflation: Making Sure It Doesn’t Happen Here”, he explained that the Fed could prevent deflation from taking hold in the United States by creating money and using it to acquire government and agency (i.e. Fannie Mae and Freddie Mac) bonds. He proclaimed that this[...]
Terrifying Chart Predicts Gold Spike & Meltdown For Markets
Today King World News interviewed a 60-year market veteran who made some absolutely fascinating predictions as we head into the end of 2014. He discussed what to expect in the major markets, including stocks, gold, and silver. Rosen also included an astonishing chart which predicts a gold spike as well as disaster for the global markets. Below is six-decade market veteran Ron Rosen’s remarkable [...]
CNNMoney: Many Baby Boomers May Be Over Weight in Stocks
Tuesday, 21 Oct 2014 07:40 AM By Dan Weil A rule of thumb has it that the percentage of your portfolio devoted to bonds should equal your age. But many baby boomers are drifting far from that formula. In the 60-to-65 age bracket, 30 percent have placed almost all of their savings in stocks, and 52 percent allocate more than 70 percent of their portfolio to equities, according to an analysis of[...]
Is This The Start of The Long-Awaited Correction or Something Even Worse?
U.S. stocks sold off sharply last week, continuing the rout that began in late-September. Since the market’s peak, the SP500 fell 5.6 percent, the Dow lost 4.7 percent, and the Nasdaq Composite dropped 7.3 percent. A panoply of concerning factors combined to send jitters through the global financial markets over the past month: Tightening U.S. monetary policy (the end of QE3 and upcoming Fed[...]