CHARLES HUGH SMITH'S
NEW SERIES RELEASE
Sultans of Swap
Extend & Pretend
Preserve & Protect
"Currency Wars "
"SULTANS OF SWAP"
archives open in new window
Current Thesis Advisory:
"EXTEND & PRETEND"
PDF, 62 pages
Published November 2009
Use Promo Code: INTRODUCTION
in the Email Subject
"PRESERVE & PROTECT"
archives open in new window
Follow Our Updates
AND FOR EVEN MORE ON RETAIL
STRATEGIC MACRO INVESTMENT INSIGHTS
2014 THESIS: GLOBALIZATION TRAP
NOW AVAILABLE FREE to Trial Subscribers
Reading the right books?
We have analyzed & included
these in our latest research papers Macro Analytics videos!
OUR MACRO ANALYTIC
John Rubino's Just Released Book
Charles Hugh Smith's Latest Books
Our Macro Watch Partner
Richard Duncan Latest Books
F William Engdahl
OTHERS OF NOTE
AN ORCHESTRATED BOND ROTATION?
Setting Up a UST Supply Shortage
SETTING UP A SUPPLY SHORTAGE
An equity market correction would now be exactly what the Fed would want and needs for the Bond Market.
Supply is being choked and with demand surging with a “Flight to Safety”, it would drive bond prices up and yields down. Financial Repression suggests this is exactly what we should expect if it is being successfully implemented. The Fed now controls the Inventory and the Government has been shrinking Supply on a relative basis. With 10K Baby Boomers retiring daily and an $84T unfunded entitlement problem, the government will soon need lots of cheap money – and the cheaper the better!
SHRINKING THE SUPPLY
IGNITE A SHORT SQUEEZE
IMPROVING THE RELATIVE YIELD
When stock prices go up it makes yields worse and therefore even ridiculously poor bond yields become attractive.
Driving the stock market up actually helps make bonds more attractive. The excess earnings yield (that is the difference between stock yields less the 10Y bond Yield) has spiked higher and appears to suggest a correction might be in order.
The Fed and Central Bankers may in fact have a very clever strategy going here. I’ll let you be the judge.
NEVER FORGET: QE IS ABOUT FUNDING GOVERNMENT DEBT
CREATING DEMAND THROUGH FEAR!
MISPRICING OF RISK
SHADOW BANKING MUST BE RE-IGNITED
The Shadow Banking System must be re-ignited based on a desperate search for yield with almost mindless consideration to Risk.
For more detail signup for your FREE copy of the GordonTLong.com THESIS PAPER
Signup for notification of the next MACRO INSIGHTS
Request your FREE TWO MONTH TRIAL subscription of the
Global Macro Tipping Points (GMTP) Report at GordonTLong.com
No Obligations. No Credit Card.
Gordon T Long
Publisher & Editor
Gordon T Long is not a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. Of course, he recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and barring that you are encouraged to confirm the facts on your own before making important investment commitments.
© Copyright 2013 Gordon T Long. The information herein was obtained from sources which Mr. Long believes reliable, but he does not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that Mr. Long may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website. Mr. Long does not intend to disclose the extent of any current holdings or future transactions with respect to any particular security. You should consider this possibility before investing in any security based upon statements and information contained in any report, post, comment or suggestions you receive from him.