The "Debt Sell-off" Continues: What This Means For Stocks, The Dollar, Gold & Silver. By Gregory Mannarino

in money •  2 years ago 

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The selloff of debt, which really got started yesterday, has accelerated today with the US 10 year yield now at 2.335%.

Just to put a perspective on this, less than a month ago the US 10 year yield was 2.04%.

If you are familiar with my work, as well as the recent suggestion by former fed chairman Alan Greenspan, the debt market is in a bubble-which means that there will be a point when the debt market sells off at an accelerated pace, forcing bond yields higher, rapidly. Now I am not saying we are at that point now, however it is very worthwhile to pay attention to this dynamic.

As I spoke about yesterday in an article I had written here on Steemit, I personally believe at this point that the recent selloff in debt will lead to rising stock prices. I also believe it is highly likely that the recent dollar strength that we have been seeing will drop off, which is also stock market positive.

If I am correct about the dollar, and I believe I am, along with the stock market we will see the price action of gold and silver also rise.

So there is where the opportunities are my friends.
In my opinion this "dumping of debt" is going to push cash back into risk-on assets like stocks. Moreover, a rise in the price action of gold and silver is also highly likely as the dollar resumes is downward momentum.

Gregory Mannarino
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When European debt does the same thing, all hell will break loose.

Nice post and understanding of the situation.
I do publish a Daily Market News in case you would be interested to follow.
We are not so many to talk about "Traditional" Financial Markets ;).

Greg you are totally 100 percent right and we did upvote and we did re steem it so s many people can also see just how right you are

An interesting read there - you say 'In my opinion this "dumping of debt" is going to push cash back into risk-on assets like stocks' but when did cash recently really leave stocks in any meaningful sense? Not trolling but curious in your take on this and assuming your primary index is the Dow?

  ·  2 years ago (edited)

back in December 10year was @2.54 and gold was 1,131 silver was 16.00
its a tough call to make but i wouldn't think to see any big change unless 10year is 3.25 that would be a big move out of debt

nice blog

Again, thanks for the golden nuggets of wisdom.

I think you are correct for the short term. And that is what you need to be to make money betting on stocks and bonds.

However, I do not feel you are correct in the long term.
Just like few of us could even conceive of quantative easing, I feel that there is something radical that is going to change in these markets.

Something like, there will be a bond sell off and the FED will buy them all, so the price never actually moves much... and then, the FED has all of its own debt, not realizing that is game over. As in, when one person has all the money and properties in monopoly, the game is over... lets play something else.

I am so grateful for your updates!

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