Bond bubble could be bursting

DarkDusk

This is astonishing, I have been waiting for this for a long time. Rates in the US are rising RAPIDLY now, the bubble could be bursting. Get some cover guys...

daheff

looks somewhat similar to Japan. Threat of removal of liquidity measures are spooking mkts.

DarkDusk

Stocks and bonds ALL over the world are falling right now. ECB will have to take action fast. Expect Fed to increase QE. Watch gold closely.

daheff

daheff wrote: »

looks somewhat similar to Japan. Threat of removal of liquidity measures are spooking mkts.

just follow up on this...Just read that US hedge funds are selling JP Equities buying back Yen short positions on the back of threatened Fed reduction in stimulus.


Investors, mainly hedge funds, have been cutting such positions on concerns that the U.S. Federal Reserve will scale back its massive stimulus and after the Nikkei had rallied more than 80 percent from mid-November to its 5-1/2 year peak hit on May 23

DarkDusk

Things have worsened since I created this thread... Everything is unravelling right now and it could become very serious very quickly. Bond yields all over the world are rising like crazy, look at Indonesia! :eek: Stocks are plummeting globally and the consequences of QE by the central banks are now becoming clear. Bonds and stocks are going to feel the pain when the worst of this kicks off and I really believe that precious metals are going to sky-rocket once the world finds out that we are back to 2007 again and that the recovery was fake.

This time it's going to be a global problem - there will be no such thing as emerging countries after this in my opinion. Bubbles are going to burst in China, Canada, Australia, Brazil along with the rest of them.

This could be end-game.

Roonbox

DarkDusk wrote: »

Things have worsened since I created this thread... Everything is unravelling right now and it could become very serious very quickly. Bond yields all over the world are rising like crazy, look at Indonesia! :eek: Stocks are plummeting globally and the consequences of QE by the central banks are now becoming clear. Bonds and stocks are going to feel the pain when the worst of this kicks off and I really believe that precious metals are going to sky-rocket once the world finds out that we are back to 2007 again and that the recovery was fake.

This time it's going to be a global problem - there will be no such thing as emerging countries after this in my opinion. Bubbles are going to burst in China, Canada, Australia, Brazil along with the rest of them.

This could be end-game.

Get some tbt

Caliden

Been watching my small investment closely for the past 2 weeks and it's been enough of a kick for me to move it.

Low Energy Eng

TBT?

Value Hunter

Any recommendations for funds/etf or particular stocks to act as a hedge against the market? TBT recommendation from Roonbox noted

Value Hunter

Low Energy Eng wrote: »

TBT?

http://finance.yahoo.com/q/pr?s=TBT+Profile

anto77

Completely agree, i think we could be seeing the beginnings of a very disorderly unwind and scramble for the exit, rats fleeing a sinking ship comes to mind. I agree that gold should see a major bounce, the second half of this year will be fascinating to see what happens, this is where the real news is at now....I think many underestimate the speed of how things can turn very ugly in a short space of time.

DarkDusk

anto77 wrote: »

Completely agree, i think we could be seeing the beginnings of a very disorderly unwind and scramble for the exit, rats fleeing a sinking ship comes to mind. I agree that gold should see a major bounce, the second half of this year will be fascinating to see what happens, this is where the real news is at now....I think many underestimate the speed of how things can turn very ugly in a short space of time.

Indeed, things can happen VERY quickly. From what I can remember, back in the 80's when the last bond bubble burst, yields rose rapidly in a very short period of time.

Yes, the next 6 months are hugely important for the world economy. All I'll say is that the inevitable cannot be avoided and people should prepare for the worst.

freeze4real

Is there an article where I can update myself on this activities. too lazy as I'm drowsy.

I've been out of reading the fundamentals for quite a while now.

DarkDusk

freeze4real wrote: »

Is there an article where I can update myself on this activities. too lazy as I'm drowsy.

I've been out of reading the fundamentals for quite a while now.

Huh?! Emm, not sure what you are getting at but if you want something to look at you should do what I am doing and watch the 10 year yields on US bonds: http://www.marketwatch.com/investing/bond/10_year

If you see yields going over 3%, I'd be running for cover... :eek:

Edit:
Make sure to look at the 5 year chart from link above to get an idea of how this bubble is beginning to burst.

DarkDusk

Roonbox wrote: »

Get some tbt

I bought TMV when it was $53 with my stock simulator, up 24% since then!

tommylimerick

does the government really care what token is coming with a bond as long as they did not issue it with that token , I wouldn't
gold is a bad investment I think it pays you nothing no dividend no token just its a store of value and in times of uncertainty gold is a safe haven
we will not see another crash the disaster has come and gone
imo

DarkDusk

tommylimerick wrote: »

does the government really care what token is coming with a bond as long as they did not issue it with that token , I wouldn't
gold is a bad investment I think it pays you nothing no dividend no token just its a store of value and in times of uncertainty gold is a safe haven
we will not see another crash the disaster has come and gone
imo

You are going to be amazed with what's going to happen in no less than 36 months.

Edit:
Just saw one of your posts in which you said you bought a stock because you liked the look of the graph, without knowing anything about the company at all. Oh yes, I will take your opinion very seriously. :rolleyes:

tommylimerick

I am doing ok
imo

DarkDusk

tommylimerick wrote: »

imo

Sorry, but I'm not going to take your opinions seriously.

zpehtsfd

DarkDusk wrote: »

Just saw one of your posts in which you said you bought a stock because you liked the look of the graph, without knowing anything about the company at all. Oh yes, I will take your opinion very seriously. :rolleyes:

That's ironic because the reason most bubbles happen, in equities especially, is due to the graph. I know many traders that only have a cursory knowledge of the companies they trade but buy/sell based off of the graph, and are very successful. Many different strategies work in the markets so no need to criticize others.

DarkDusk

zpehtsfd wrote: »

That's ironic because the reason most bubbles happen, in equities especially, is due to the graph. I know many traders that only have a cursory knowledge of the companies they trade but buy/sell based off of the graph, and are very successful. Many different strategies work in the markets so no need to criticize others.

Yes, it is called technical analysis. But, with this user, he simply said he looked at the graph and bought the stock without giving it much thought, which is not wise in my opinion. The investors who use graphs in their investment strategies spend a lot of time looking at resistances, supports, volumes etc. before making a decision.

DarkDusk

But back to bonds, 10 year treasury finished at about 2.5% this week, doesn't look like it will be able to push down any further than 2.4% without additional easing by the Fed.

Think about it, why would people buy bonds now if they are expecting the Fed to reduce their bond-buying?

In my opinion, the next move by the Fed will be more easing, not tightening.

zpehtsfd

DarkDusk wrote: »

The investors who use graphs in their investment strategies spend a lot of time looking at resistances, supports, volumes etc. before making a decision.

So you just assumed the other poster didn't analysis the graph before buying the company. Hmm.

DarkDusk

zpehtsfd wrote: »

So you just assumed the other poster didn't analysis the graph before buying the company. Hmm.

Obviously, from the way the user phrased his post. He didn't deny it either or say that he did do extensive chart research.

Please, back to topic.