The MMRI is dropping and yet stonks are selling off today. Do you have a theory as to why? Is this a ploy to get the small mom & pop investors off the side lines while the big hedge funds pull out?
Volatility. The daily trading fluctuates but the overall trend is upward on stocks and downward on the bond market. This bubble is going to implode (not explode) and it’s going to crash in on the middle class investors (mom & pops).
Answer: The recent drop of the US 10-year Treasury yield below 4% is a significant development with several implications:
1. Economic outlook: A falling 10-year yield often signals that investors expect slower economic growth and lower inflation in the future. This could indicate concerns about a potential economic slowdown or recession.
2. Federal Reserve policy expectations: The yield decline suggests that investors are anticipating the Federal Reserve will start cutting interest rates sooner or more aggressively than previously expected. This is likely due to signs of easing in the labor market and weaker economic data.
3. Borrowing costs: As the 10-year yield serves as a benchmark for many other interest rates, its decline could lead to lower borrowing costs across the economy, including mortgage rates. This could potentially stimulate spending and investment.
4. Flight to safety: The drop in yield may indicate increased demand for safe-haven assets like US Treasuries, possibly due to growing geopolitical risks or economic uncertainties.
5. Bond market dynamics: The sharp decline in yield (110 basis points in less than two months) suggests a significant increase in demand for 10-year Treasury bonds, driving up their prices and pushing down yields.
6. Stock market implications: Lower yields can make stocks relatively more attractive, potentially supporting higher equity valuations.
7. Global investment flows: As US Treasuries are a key part of global financial markets, the lower yield could affect international capital flows and currency markets.
It's important to note that while this drop is significant, the reasons behind it are complex and multifaceted. Factors such as changing inflation expectations, Federal Reserve policy, global economic conditions, and market sentiment all play a role in determining Treasury yields.
Those are all very good points. If the 10 year note continues to fall, (as it did in 1929), it may be the harbinger of a crash and ensuing depression (as if we aren’t already there). These severe corrections happen every 90-100 years. We are right on schedule.
The only reason we don’t have bread lines now is because the government issues EBT cards. I’d like to see a percentage on the recipients of welfare benefits.
The illegal immigrants have flocked to our nation to consume the “milk and honey.” This adds to the national debt and enhanced dragflation.
I'd like to support you, however, I don't use PAYPAL (for obvious reasons) and I don't use digital pay (like Stripe). so... I'm trying to setup and purchase bitcoin. when that's accomplished, I'll send you some.
PS. on the Bitcoin (using coinbase), they will NOT allow you to use a bank or credit card account if it's a business account or joint owner. :-( so, I'm trying to setup yet another account (with a credit union) so I can add that to Coinbase for purchasing bitcoin. strange rules....
thanks! I;d like to connect, but I'm an old (not really with) all the social media stuff (apps, etc). I only use a smart phone to send text messages to my customers. I have no apps loaded and have stripped out all that I consider 'suspicious'. yes, I'm weird like that.
I even shut off my phone when I leave work (and don't turn it back on until I open the store at 10am). my trust of the gov and 'all seeing eyes' it non-extant.
.... nothin' shakin' on Shakedown Street... the sunnyside of the street is dark - maybe the dark is from your eyes - maybe you had too much too fast... maybe they must keep pulling the paper conveyor-belt. Cantillon Effect will be known to all soon enough.. Can't print rice and beans .
Greg, Not to beat a dead horse here but, I would love to get your take on how "MAXIMUM SATURATION" can be applicable if this incredible Fed buying anomaly has such an ability to move the debt market like this? I am assuming if MAXIMUM SATURATION is truly that much in effect, how can the forms of whatever monetary means the Fed uses to do so can actually do so? Please advise.
Yeah, but the pace at which it's falling is massively inflationary. By the time the FED feels confident to cut rates, core inflation will start ramping back up, and they will "surprisingly" switch to a much more aggresive narrative.
Greg,
The MMRI is dropping and yet stonks are selling off today. Do you have a theory as to why? Is this a ploy to get the small mom & pop investors off the side lines while the big hedge funds pull out?
Same question as to why silver is taking a hit while the dollar drops.
Volatility. The daily trading fluctuates but the overall trend is upward on stocks and downward on the bond market. This bubble is going to implode (not explode) and it’s going to crash in on the middle class investors (mom & pops).
So, what you are saying in a sort is that "MAXIMUM SATURATION " hasn't actually become a reality as of yet?
Is this it? Is this finally the big one? Are we finally going to hyper-inflate into oblivion circa Argentina 2001???
AMAZING!🤔
Get a real job Fred or George or whoever you are.🤣
Can I get that rate on my home equity loan? ha.
Funny how lower rates don’t “trickle down.”
I've never counted so many Greg fakes...
Looks like a possible epic market reversal. Dow down 200. Others dropping fast.
I asked Perplexity, "What does it mean when the US 10 year yield has just dropped to sub 4%?"
Sources: cnbc.com, rsmus.com, plus 2 more
Answer: The recent drop of the US 10-year Treasury yield below 4% is a significant development with several implications:
1. Economic outlook: A falling 10-year yield often signals that investors expect slower economic growth and lower inflation in the future. This could indicate concerns about a potential economic slowdown or recession.
2. Federal Reserve policy expectations: The yield decline suggests that investors are anticipating the Federal Reserve will start cutting interest rates sooner or more aggressively than previously expected. This is likely due to signs of easing in the labor market and weaker economic data.
3. Borrowing costs: As the 10-year yield serves as a benchmark for many other interest rates, its decline could lead to lower borrowing costs across the economy, including mortgage rates. This could potentially stimulate spending and investment.
4. Flight to safety: The drop in yield may indicate increased demand for safe-haven assets like US Treasuries, possibly due to growing geopolitical risks or economic uncertainties.
5. Bond market dynamics: The sharp decline in yield (110 basis points in less than two months) suggests a significant increase in demand for 10-year Treasury bonds, driving up their prices and pushing down yields.
6. Stock market implications: Lower yields can make stocks relatively more attractive, potentially supporting higher equity valuations.
7. Global investment flows: As US Treasuries are a key part of global financial markets, the lower yield could affect international capital flows and currency markets.
It's important to note that while this drop is significant, the reasons behind it are complex and multifaceted. Factors such as changing inflation expectations, Federal Reserve policy, global economic conditions, and market sentiment all play a role in determining Treasury yields.
I hope this helps.
Those are all very good points. If the 10 year note continues to fall, (as it did in 1929), it may be the harbinger of a crash and ensuing depression (as if we aren’t already there). These severe corrections happen every 90-100 years. We are right on schedule.
The only reason we don’t have bread lines now is because the government issues EBT cards. I’d like to see a percentage on the recipients of welfare benefits.
The illegal immigrants have flocked to our nation to consume the “milk and honey.” This adds to the national debt and enhanced dragflation.
In other words; We are screwed!
I'd like to support you, however, I don't use PAYPAL (for obvious reasons) and I don't use digital pay (like Stripe). so... I'm trying to setup and purchase bitcoin. when that's accomplished, I'll send you some.
PS. on the Bitcoin (using coinbase), they will NOT allow you to use a bank or credit card account if it's a business account or joint owner. :-( so, I'm trying to setup yet another account (with a credit union) so I can add that to Coinbase for purchasing bitcoin. strange rules....
thanks! I;d like to connect, but I'm an old (not really with) all the social media stuff (apps, etc). I only use a smart phone to send text messages to my customers. I have no apps loaded and have stripped out all that I consider 'suspicious'. yes, I'm weird like that.
I even shut off my phone when I leave work (and don't turn it back on until I open the store at 10am). my trust of the gov and 'all seeing eyes' it non-extant.
cheers
Scott Ritter should follow your example.
.... nothin' shakin' on Shakedown Street... the sunnyside of the street is dark - maybe the dark is from your eyes - maybe you had too much too fast... maybe they must keep pulling the paper conveyor-belt. Cantillon Effect will be known to all soon enough.. Can't print rice and beans .
WOW!! At this rate we'll be MMRI sub 200 by election time!! You are right. They are cutting rates NOW, it's just that most don't realize it.
Greg, Not to beat a dead horse here but, I would love to get your take on how "MAXIMUM SATURATION" can be applicable if this incredible Fed buying anomaly has such an ability to move the debt market like this? I am assuming if MAXIMUM SATURATION is truly that much in effect, how can the forms of whatever monetary means the Fed uses to do so can actually do so? Please advise.
Yeah, but the pace at which it's falling is massively inflationary. By the time the FED feels confident to cut rates, core inflation will start ramping back up, and they will "surprisingly" switch to a much more aggresive narrative.
Hang on to your backsides!
Wow!