Originally published on TheTechTrader.com
Originally published on MPTrader.com.
I got word from a Sloper yesterday that an arch-enemy of this blog had poured a huge portion of his portfolio into FB and YELP at much higher prices. I'm too classy to name names, but I'll just say it couldn't happen to a nicer guy.
Remember: Slope & Tim=good. Enemies of Slope=evil. It's easier to remember, and it's the truth.
Over the past three years we have been beaten over the head with the concept of flight to quality; simply as the equity market falls the bond market rallies. Global unrest crushes equities, the warm fuzzy blanket of Quantitative Easing rallies equities. Now I present to you the idea of equity flight to quality. Huh? Yes, flight to equities for safety.
Here is the theory. If I’m a global fund manager, especially in Europe, I’ve seen my local stock markets get crushed so I need to find somewhere to put my money. I don’t trust European bonds, I don’t trust European stocks. Precious metals are volatile especially if based on the wrong currency. So I look across the pond and see US Treasuries and US equities. US Treasuries are offering record low yields; the 10 year just fell to 1.5% and that just doesn’t look very appealing. This leaves US stocks.
I've decided to release my new project tomorrow, June 1st. I've been at work on it for quite some time, and although I'm very proud of ProphetCharts, this new creation is, I think, my best idea (errr, it's not a chart package – – something quite different). I'm quite excited about it, and I hope you like it. I'll be putting up a post and video at midnight. Thank you.