The Giant Hunt For Yield Will Lead To A Financial Melt Down
The US 10 Years Treasury yield is poised to test the 6 years low at 1.35% as negative bond yields wash over Europe and Japan. This will force the Fed to keep lowering rates so that America can remain competitive with the rest of the world. Investors and corporation will be force and lured into taking riskier bets and anything that provides some sort of decent cash flows will be bought up, as American yields head lower and lower. The elusive inflation, that central bankers hope will rise to ease the global debts problem has not materialize inspite of prolonged monetary stimulus. The build up in risky asset and debts will eventually lead to a Big Blow up. The only safe haven this blog believe is in Gold.
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