Maybe the rising 200 MA does the trick to stop the sell off in
bonds. But interesting that Bernanke has tried to guarantee
ultra-low rates for the next two years (and most everybody believes
him). The surprise of this bond sell-off is that maybe the
money doesn't naturally flow back into stocks at all (too early to
tell as Matt says). For instance, home mortgages just got a
whole lot more expensive (and hence home values just took a big hit
over the last week). How will this affect the economic
recovery? Gas at $4+, mortgages getting more expensive, home
prices falling, more people going underwater on their mortgages
etc. Not trying to doom and gloom, but just thinking through
what rising rates might mean to this market.
Posted by leeannf51 on 14th of Mar 2012 at 12:52 pm
And even more amazing is that the USD rising may be a temporary
pullback for the metals but is barely moving the price of oil or
gas.
It is hard to understand how or why TPTB would risk a flood of
bond money into equities,knowing that a flood will turn into a
tsunami of malinvestment.
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Title: Bernanke losing control? Maybe the
Posted by kalinm on 14th of Mar 2012 at 12:36 pm
Maybe the rising 200 MA does the trick to stop the sell off in bonds. But interesting that Bernanke has tried to guarantee ultra-low rates for the next two years (and most everybody believes him). The surprise of this bond sell-off is that maybe the money doesn't naturally flow back into stocks at all (too early to tell as Matt says). For instance, home mortgages just got a whole lot more expensive (and hence home values just took a big hit over the last week). How will this affect the economic recovery? Gas at $4+, mortgages getting more expensive, home prices falling, more people going underwater on their mortgages etc. Not trying to doom and gloom, but just thinking through what rising rates might mean to this market.
Re:Bernanke Losing Control
Posted by leeannf51 on 14th of Mar 2012 at 12:52 pm
And even more amazing is that the USD rising may be a temporary pullback for the metals but is barely moving the price of oil or gas.
It is hard to understand how or why TPTB would risk a flood of bond money into equities,knowing that a flood will turn into a tsunami of malinvestment.