These are the most dangerous markets I have ever witnessed in my entire life, and I’ve been investing for over 25 years.
Global central bank balance sheets are up from $6 trillion in 2007 to $21 trillion today and they are still being expanded at the pace of $200 billion each and every month.
What’s happening is that the robo-traders, the algorithms, the frontrunners on Wall Street and around the world are just gaming the system, looking for the next increase in central bank credit to take their collateral to the ECB or to the Bank of Japan or to the Fed and buy more stocks and bonds.
That’s the game we’re playing today folks.
Even a hint that it might someday end sends the entire investment community scampering for the door; and that door is very, very narrow and can only fit a few people through it.
I am afraid when that bubble bursts, it will wipe out every asset — everything will collapse together — because everything is geared off of that so-called ‘risk free’ rate of return.
If your risk free rate of return has been warped down to 0% for 96 months, then everything — and I mean diamonds, sports cars, mutual funds, municipal bonds, fixed income, REITs, collateralized loan obligations, stocks, bonds, everything, even commodities — will collapse in tandem along with the bond bubble burst.
Fore More: http://www.blackhawkpartners.com/brace-folks-going-get-real-ugly/
https://twitter.com/blackhawkinc
https://www.crunchbase.com/person/ziad-abdelnour
https://www.linkedin.com/in/ziadkabdelnour
https://www.facebook.com/ziad.k.abdelnour
https://www.youtube.com/user/ZiadKAbdelnour
https://www.pinterest.com/ziadabdelnour/
Global central bank balance sheets are up from $6 trillion in 2007 to $21 trillion today and they are still being expanded at the pace of $200 billion each and every month.
What’s happening is that the robo-traders, the algorithms, the frontrunners on Wall Street and around the world are just gaming the system, looking for the next increase in central bank credit to take their collateral to the ECB or to the Bank of Japan or to the Fed and buy more stocks and bonds.
That’s the game we’re playing today folks.
Even a hint that it might someday end sends the entire investment community scampering for the door; and that door is very, very narrow and can only fit a few people through it.
I am afraid when that bubble bursts, it will wipe out every asset — everything will collapse together — because everything is geared off of that so-called ‘risk free’ rate of return.
If your risk free rate of return has been warped down to 0% for 96 months, then everything — and I mean diamonds, sports cars, mutual funds, municipal bonds, fixed income, REITs, collateralized loan obligations, stocks, bonds, everything, even commodities — will collapse in tandem along with the bond bubble burst.
Fore More: http://www.blackhawkpartners.com/brace-folks-going-get-real-ugly/
https://twitter.com/blackhawkinc
https://www.crunchbase.com/person/ziad-abdelnour
https://www.linkedin.com/in/ziadkabdelnour
https://www.facebook.com/ziad.k.abdelnour
https://www.youtube.com/user/ZiadKAbdelnour
https://www.pinterest.com/ziadabdelnour/
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