Global Bond Yields COLLAPSE!

Stocks And Bonds Diverge   It wasn’t that long ago the markets anticipated a substantial economic slowdown.  The 20% or so plunge in equities was coupled with a sizable drop in Treasury Bond Yields. Something odd is going on.  Most key equity indexes are approaching all-time highs.  Bonds yields, on the other hand, are breaking […]

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Plunging Yields Point to Rising Deflation Risk

Long Term Interest Rates Plunge to 2.9% Despite the Federal Reserve’s (the Fed) policy of slowly raising rates to “Neutral”, the Bond Market won’t cooperate.  On Thursday, yields fell to a level that, not long ago, seemed UNTHINKABLE. The Mini-Slideshow below illustrates the dramatic downward moves in 5 year, 10 year and 30 year maturities.  […]

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Are We Heading Straight into Global Deflation?

Commodities, Led By Oil, Make New Lows Crude Oil is an input into producing virtually everything, including itself.  It takes oil to transport, refine, drill or pump oil.  Energy is a large portion of the cost of just about everything. West Texas Intermediate Crude Oil closed at $46.60 yesterday, a 40% drop since October.  The […]

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Asset Bubbles Start Popping as Interest Rates Surge.

Asset Bubbles Start Popping as Interest Rates Surge. It was “too good to be true” for “too long to be true”.  Nearly 38 years of falling interest rates (or RISING BOND PRICES) and a 9-year Bull Market in Equities appear to be beating a hasty retreat.  Lots of signs were there: this unprecedented period of […]

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The Interest Rate Bomb: Is The Fuse Now Lit?

The Interest Rate Bomb: Is The Fuse Now Lit? Recently, we noted the critical role that higher inflation and interest rates would play in The Inflection Process.  Furthermore, the levels of interest rates seemed so low as to make very little logical sense (https://markonomics101.com/2018/09/03/inflection-point-part-5-interest-rates-inflation-and-inflection/.)  Not only does “reported” inflation (currently 2.9% annually) seem to vastly […]

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Interest Rates Poised To Turn Higher?

Interest Rates Poised To Turn Higher? Recently, we described the unusual relationship between inflation, GDP, and interest rates in “Inflection Point (Part 5): Interest Rates, Inflation, and Inflection” (https://markonomics101.com/2018/09/03/inflection-point-part-5-interest-rates-inflation-and-inflection/).  It is vital that investors understand the accuracy and quality of “official” numbers regarding economic performance, especially in making investment decisions. The Bureau of Labor Statistics […]

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