According to my findings discussed below in great detail more than once, the decline in the stock market is anticipating much lower bond yields and higher bond prices.
Only then will the market attempt to find a bottom.
The markets are going to ease aggressively. The Fed has little relevance at this point.
We have these problems because the Maestro tried to find the solution to the 2000 market debacle. Let's hope they do not interfere with the markets. The distortions they create are painful, as we are experiencing.
The markets always do what they have done in the past. Lower stock prices are followed by lower interest rates. It is happening.
Treasury bills are plunging. They will be followed by lower bond yields.
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
2 comments:
Peter-
I was shocked to look at those numbers this morning. I find your writing style very difficult to follow but once I parse it enough times I can see what you are saying.
Re "catching falling knives", is it your experience that one waits for the trend to turn, ie don't try to catch bottoms?
As T-Bills go lower, is SHY a better investment than TLT? Do both short and long yields go lower in tandem?
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