The stock market is losing its Ponzified funding mechanism as T Bonds tank…
It is losing a leader to speculation as Junk Bonds tank…
And it is facing a crisis in credit as Investment Grade Bonds tank…
Meanwhile, established Global Bonds are falling apart again as well…
And unlike in 2012, Emerging Market Bonds are not providing a bullish divergence to the bearishness…
But the “new secular bull market” touts are talking about a “Great Rotation”, which will probably be seen as just another “Great Promotion” coming out of the financial services industry and associated media.
T Bonds, with rates of interest so long repressed by policy makers are puking in our heroes’ faces right now. 2011: Bernanke = Goat; 2013: Bernanke = Hero. So which is next? I think that he’ll be looked back upon in a similar way as Greenspan, having gotten out of Dodge just in the nick of time. Or maybe not quite if the stock market comes unwound for real sooner rather than later.