As I keep saying, if there is one theme for me in 2018, it is “bonds are screwed.” I’ve been harping on this to my beloved PLUS subscribers for a while. Finally I think we’ve got a situation that’ll bludgeon Yellen (although, wisely, she is in the happy opportunity of fleeing her post before the proverbial SHTF). Here’s where we are at:
I’m sure exploding interest rates, along with their accompanying increase in credit card payments, mortgage payments, and other components of the hundreds of trillions of dollars in debt around the world, are going to do wonders for the economy.
Incredibly, The Powers That Be are actually allowing a tiny bit of red this morning, with the ES down 7 and the NQ down 19 as of this writing. How long will their deign this dip permissible? Gosh, maybe even hours.