Lions and friends…
You and I both understand that the stock market itself derives value from debt market action.
Suppressed rates drives cash INTO the stock market. PERIOD! That is what it is meant to do… this process is also massively inflationary as the cash needed to prop up the stock market must be created out of nothing! So the Fed. in this case, can buy more and more debt to keep rates artificially suppressed.
The Federal Reserve has been exceedingly successful in re-inflating a massive stock market super-bubble by keeping rates suppressed ever since the stock market crash of 08’ Moreover, it seems that every time bond yields begin to spike- by some miracle, bond yields drop and stocks go higher…
If you have followed my work, then you are well aware that I continue to say repeatedly that this phenomenon of suppressed rates will continue to push cash into the stock market UNTIL we see an uncontrolled selloff in the debt market, (a rapid and not stopping rising of bond yields, especially the US 10yr).
Haven’t I been clear on this?
As most of you know, I personally have been net long this market FOR YEARS! Yet… there are some who believe that I am some kind of stock market crash caller.
THE REAL CRASH will not begin, nor end, in the stock market! For the thousandth time!
The REAL crash will begin with a debt market meltdown/selloff… something I have said literally for years.
I wanted to clear up any confusion on this.
GM
Greg you nail it to the wall my man. Best commentary on YT. Better than 99.99% of "experts". You get it.
Can you tell the truth the way it is because it’s the truth you have what we call integrity that’s why you are the man!!