stocks soared for a while in Zimbabwe as their inflation spiraled out of control
The more that investors come to think another cycle of global growth is safely under way, the riskier it will be to hold corporate bonds, $8 trillion in the US alone. With yields priced for deflation, that bubble is dangerous to own on 10-year maturities. The money will rotate into equities and bullion, with Chinas central bank driving gold through $2,000 at last.
As a polar bear, I doubt that such a happy cycle is upon us. We merely have a rally within a structural trade depression.
The headwinds of deleveraging will return with gale force. The glut of excess global savings that lay behind the great crisis of 2008-2009 -- and that has kept us stuck in the Long Slump ever since -- is still getting worse. The international trading system remains badly out of kilter.
There is chronic overcapacity across global industry and not enough demand to carry a full cycle of economic expansion, or to reach "escape velocity" as they say these days.
Until that changes, every global rebound is doomed to disappoint within a few quarters, and that includes the cyclical upswing of 2013.
World fiat is devaluing: most of all the Yen, which will crash before the end of the year.
Too much Government debt and WAY too much Japanese Government debt.
Buy gold and silver.
I’m planning to sell into any pops. We have this scenario repeating in two more months. And who knows what else will be going on...esecially in the M.E.
This headline needs a Stackers Alert tag.
discrimate financially against all those who voted to destroy you
let “stinky” and his insiders eat cocaine
a dog-eating jackal is not a border collie