Looks like the bondpocalypse might come a little early. Bill Gross should be wearing diapers by now. We are approaching 3.0% on the 10yr, and the Fed is still buying! What happens when the Fed starts scaling back purchases? Who steps in behind them, and what if nobody does? Nothing good - I'll guarantee that much. Further, how can 'the great rotation' happen when equities are already overbought? We are likely to see liquidity and velocity hit rock bottom in short order, and what do you suppose that portends for credit creation? Nothing good - I'll guarantee that much.
I'm on the opposite side. Just waiting for the big drops and buying-in, made a good chunk of transfer to PTTRX yesterday. Just trying to see what makes sense and projected path of the storm and my rudder is dead on by seaman's eye going all ahead flank. Hopefully till end of the year. Sabbath still rocks and in Bill i trust.
Actually a few of the big banks are forecasting a bull run in equities for the next year. Was in the WSJ yesterday and I mentioned it in another thread. Stocks finished green today despite 10 year treasuries popping and war pending. That should tell you something about how stout equities are ATM. I do not see much of a chance that equities tank.
Another post from someone that gets their panties in a wad at the thought of the 10 year going to 3%. I see you haven't been in the bond market very long have you? What are you going to do when it hits 4%? 5%. I'd suggest you grow a pair and man-up.
It doesn't matter what any of us think about T-Bonds at 3%. What really matters is that the increased interest expense will just push this BANKRUPT country closer to default. Economics and mathematics are vengeful biatchs and the Fed and Treasury are run by dangerous psychopaths.