Monday, June 06, 2016

Market Valuation, Inflation
& Treasury Yields: Clues From The Past
Charts analyze the financial markets & valuation fundamentals .. Conclusion: "We have been in 'uncharted' territory. Despite the end of QE, many analysts assume that Fed intervention through its Zero Interest Rate Policy (ZIRP), will keep yields in the basement for a prolonged period, thus continuing to promote a risk-on skew to investment strategies despite weak fundamentals. On the other hand, we could see a negative market reaction to a growing sense that Fed intervention may have its downside, resulting in an aberrant bond market and increased inflation/deflation risk. We are indeed living in interesting times."
LINK HERE to the analysis

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