What more needs to be said? The stock market has been inflated along with the unsavory likes of Junk Bonds and many other ridiculously over valued items in this phase of ‘risk ON’ speculation. 3 Amigos of ‘risk OFF’ are also shown on the chart.
Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Taper!(?)
It’s ‘taper’ talk time again and here is a post that is only too happy to join the cacophony…
Dear Federal Reserve, please signal what would be at least a symbolic gesture to the market and pretend to tighten policy by beginning a tapering of long-term bond buying. We know inflation is being promoted via ZIRP at the discount window and via money printing used for T bond and MBS asset purchases. (more…)
What is Different About This Cycle in Bond Yields?
Well for one thing, gold has often experienced strength during periods when long-term yields have risen. The yellow bars on the 2 lower panels of the chart below show that. Yet on this cycle, gold has gone down as long-term yields have risen. (more…)
The Fed’s Great Adventure in Inflation
In the current policy and media stoked market environment, anything is possible. It’s the wonderful, magical world of hands-on policy making. 5 years after the financial crisis, but still not enjoying a ramping economy like the good old (and long gone) days of the last great secular bull market (RIP 2000)? Just sit back, relax and let the man in charge control the image. (more…)
The Bottoming of Deflationary Expectations & Treasury TIC Data
Here is the chart we have been using in NFTRH, showing inflation protected T bond fund TIP vs. regular T bond fund TLT. (more…)
