UPDATE: This podcast was recorded before I learned of the Saudi Arabian drone attacks. Oil will definitely receive a bid, as will gold and silver. Dynamics are fluid going into Sunday night trading
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-Despite dovish monetary policy announcements, these are the three (four) reasons why bond prices tanked
- The ECB is encouraging profligate fiscal spending,
- The U.S. is not about to enter any type of recession and domestic inflation is running a little hotter than anticipated,
- Investment grade corporate debt issuance swelled over the past couple weeks
- It was only a matter of time, based on an extremely overbought condition
-After the demoralization of the global investor in the wake of the 2008 manufactured collapse, the global elite could have implemented a number of policies, but chose the current one. We have been running it for a decade and I look for it to continue for years.
-Gold and silver fall hard on historically overbought conditions. Where I think they will move.
-Stocks will be well supported as the one-way trade of buying bonds and gold and silver falls apart.