Monday, February 17, 2014

Rally In Bonds: False Safe Haven Bid

The rally in bonds is only because of the false safe haven bid that the bonds are getting because of all the problems, just the beginning of the taper is causing. But I am not basing my idea that the taper isn`t working on the recent sell-off in the market. I knew this sell-off was coming, that is why I said, when the Federal Reserve starts to taper, the markets are going down. As the Federal Reserve tapers more, the markets are going to be under even more pressure. And imagine how much pressure they would be under if the Federal Reserve actually tried to sell the 4-plus trillion in Treasuries and mortgages that are currently on its balance sheet.

Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as "Doctor Doom" because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the first from within the professional investment field to call the housing market a bubble. Peter has written a book called "Crash Proof" and a follow-on called "The Little Book of Bull Moves in Bear Markets". He is the President of EuroPacific Capital, which is a brokerage specializing in finding dividend-yielding, value-based foreign stocks.

No comments:

Post a Comment

Popular Posts This Month