Posted on 05/31/2013 11:17:25 AM PDT by blam
BOFA: 'RISKS OF A BOND CRASH ARE HIGH'
Sam Ro
May 31, 2013, 11:02 AM
Bonds have been tumbling for most of the month, and most analysts have warned that it could get even uglier.
In a note to clients yesterday titled "Bubble, Bubble, Toil & Trouble," Bank of America Merrill Lynch strategist Michael Hartnett warns that the "risks of a bond crash are high."
More from his note (emphasis added):
As we have argued in recent years, history shows that major breakouts in equity markets tend to coincide with major inflection points in bond yields (Chart). This is now happening, which is why we continue to favor stocks, particularly banks, over bonds. The ideal scenario would be a repeat of the early 1960s, when both equities and bond yields rose in an orderly fashion, a "Velvet Rotation". But it’s hard to believe that the greatest bond bull market in history will end without some bloodshed.
Bank of America Merrill Lynch
Meanwhile, UBS is taking the other side of the trade, advising clients to "Buy Treasuries."
(Excerpt) Read more at businessinsider.com ...
And they make fun of Confederate money and bonds.
ping
Who's laughing now....
ho-lee-crab I dont care who you are- that chart does not look good for anyone
Silver was down to 23.4 last week - its high was 48 a little while back
Is it time to buy again? I dont think gold will double, but silver might
Something tells me that any breakout in equity markets is probably due to fraudulent federal reserve pumping it in with newly printed (counterfeit) money. Obama is destroying America just as fast as he possibly can.
It used to be that a US dollar could be exchanged for its value in silver or gold. Now you can only exchange it for a few metal slugs with pictures stamped on them. The dollar is, and has been for years, totally worthless, and is backed by nothing but thin air. We Native Americans already found out about the beads and shells that the government uses for money.
I still think the Union its laughing.
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