Bonds Tell Us Trump Boom Is Over: No One’s Listening

Published 04/08/2019, 08:32 AM
Updated 07/09/2023, 06:31 AM
US500
-
US10YT=X
-

The Fed has now created the single most dangerous stock market environment possible…

That’s when the economy is slowing… and stocks are RALLYING based on hopes that the Fed will soon introduce more monetary easing.

This is precisely what happened in 2008. And it’s when CRASHES happen.

And that’s when the opportunity for truly MASSIVE returns appears.

Take a look at the below chart. This is a chart of the S&P 500 stock market against the yield on the 10-Year US Treasury. And remember, bonds, particularly Treasury bonds, are considered the SMART money for a reason.

S&P 500

The S&P 500 is trading as though the US is about to enter an economic NIRVANA. The Treasury yield is trading as though the Trump economic boom is OVER: the yield has broken its bull market trendline from mid-2016 (blue line). It’s also broken below critical support (red line).

10-Year US Treasury

You can ignore bonds all you like, but they are almost always correct. They were right in 2000… and in 2008. What are the odds they’re wrong now?

Which means…

A Crash is coming… and 99% of investors will panic when it hits…

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s coming down the pike when the Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.