Thursday, August 22, 2013

Has the Fed Lost Control of the Bond Market- What to Watch For

Some interesting comments and thoughts from Fleckenstein. Even if you do not follow his thesis, what to watch for in the bond market are reason enough to take the thoughts into considerations.



Bill Fleckenstein, president of Fleckenstein Capital, is a well-known Fed watcher. He called the subprime crash in 2007 and, in an appearance on Talking Numbers back in early May, warned of impending trouble in Japan just one week before that market went into a tailspin.

Bill Fleckenstein, president of Fleckenstein Capital, says the Fed can no longer control the bond market but the markets aren’t aware of that yet. In his most recent Talking Numbers interview, Fleckenstein says there will be one definite signal to the world that the Fed has lost control and that has to do with its ability to taper quantitative easing – if it can happen any time soon. And, Fleckenstein isn’t so sure it can.

Fleckenstein also warns of “misplaced optimism” in the markets but, to hear why the markets may be missing something huge, watch Fleckenstein’s provocative interview in the video above

The video after the jump

No comments:

Post a Comment