Surprise: Federal Reserve raising rates and Yields are dropping
The Federal Reserve is raising rates. Yet despite that yields are dropping on their own. A massive amount of cash is making its way into the bond market. Fed is losing control. Spread between the short end of the curve and the long end of the curve with regard to yields continues to shrink. That yield curve is nearly flat, so that means it derives its value from what's occurring in the bond market. The action we're seeing in the stock market lately is because of this flattening yield curve.
Federal reserve, who has been monetazing the US goverment debt all from 2002
We've seen this before. If you just go to look at a chart of the dynamic yield curve (click on a graph below - and just try to watch an animation for better understanding) you'll be able to see for yourself that the action that we're seeing in the bond market and the stock market is mirroring what happened at the top of the dot-com bubble and at the top of the last bubble in 2008 it's happening again right before our eyes. It's the same thing and history is only repeating itself. The debt market is the largest market of them all.
Stock market has extremely big volatility at the moment. Markets do not see themselfs in a trading positions, they are in last few months. Also price swings are leaving many market participants fearful and seeking a safe haven in the market storm.
Of course, Wall Street wants main street to follow where they lead, but I believe in educated choices.
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FED rate hike means the end of the cheap money. Working off the prime rate, banks will determine how credit-worthy other individuals are based on their risk profile. Rates will be affected for credit cards and other loans as both require extensive risk-profiling of consumers seeking credit to make purchases. Short-term borrowing will have higher rates than those considered long-term.
That's right. And like every time, the average Joe will pay for banker's gambling game with printed money out of thin air. At this time it's pretty smart to own some silver, gold and most trustful cryptocurrencies.
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....and many others :) He was just one of those who actually talked about the problem that they cause. ECB is doing almost the same thing. So does Central bank of Japan, and so forth...