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.
All posts and charts are for educational and illustration purposes only
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