Moment of Truth for Bonds
Bonds are severely oversold. There should be a bounce but if it’s weak, or doesn’t last very long then prepare for a crash. I’ve never seen a bubble yet that popped gracefully.
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no papa, bonds will pop up
Everyone now seem sure that interest rates will rise dramatically but cyclically it seems the USD has topped,or nearly so,for the long term. Traditionally, that’s not consistent with rising interest rates. Or to put it another way, rising interest rates – even if they come – aren’t necessarily signalling a stronger dollar. And that’s why rising gold prices and rising interest rates can still go hand in hand. That’s my prediction fwiw.
How many years has Japan been doing QE? How many years has their debt to GDP been 200%?
The USA can do this crap alot longer than logic would say.
TRUE…..Markets can be irrational lot longer than you can stay solvent.
I am not in the camp of bond bursting mainly because the “system” won’t allow it….
I would agree. The system protects the banks and by default, the market. This philosophy has been working ever since 2008.
tater123, Right on! How and when interest rates will be allowed to rise is a $64B question. “They” have lots of dry ammunition left. And, “they” CANNOT allow treasury interest rates to rise significantly and suddenly. Present economic conditions can’t take it.
So, get ready for another QE in one form another. That bodes well for gold at this juncture. In fact a rise a few hundred dollars in coming months won’t surprise me at all.
However, comparison of Japan and the US is not fair. Agreed that Japan has gone a lot farther. But, then Japan is not a gravely indebted nation. That does not mean that America cannot go much further from here. In fact there are many factors in favor of America e.g. muscle power, reserve currency etc. But, comparing the is like comparing apples and oranges.
Yes, when the BOJ is actively buying ETFs and is the majority shareholder in many companies, do you even have a market with participants? No. It is all an illusion. Same here. Billions exit the market yet prices continue to elevate. How many has started pouring in at the top? Slow learners or Pavlov dogs now trained that the so called markets never go down?
In a more practical matter, what would be the strategy to get rid of jung and nugt shares shall gold nosedive?
Also any comment about the difference between nugt and jnug?
“we were told over and over not to miss a trend…”