Monday, September 12, 2016

Equity Smash Coming Up?
"Will the Fed hike into a bond rout? Do they want a bond rout to steepen the curve? That’s what the bank of Japan appears to want. But who is in control? Is anyone in control? The only question above I can answer is the last one. My answer is not encouraging: No central bank is in control. They are all guessing what they should do. I cannot emphasize enough that if a global bond rout is on, equities are going to get hammered as well. Equities cheap compared to bonds? The concept is ludicrous, and in this case irrelevant even if it was true. In case you missed it, please consider Eye on Social Mood: Stock Market Bubble Will Pop, Social Mood Will Get Extremely Ugly."
- Mish Shedlock*
LINK HERE to the commentary

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