Thursday, June 27, 2013

What I Am Reading/Watching 6/27/13- Links and Charts

Gold prices pressured by force liquidation, which is a sign of a bottoming process- Rogers

Bill Gross is out with his latest investment outlook (tipping point) and it is a must read for any investors.  The quick takeaway...
    
                   1) Yields and risk spreads were far too low two months ago.
                   2) Global markets were too levered and now they are derisking.
                   3) The bond market ship is not sinking. Expect low but positive returns in future years.
                   4) Don’t panic. Yell at someone!

The article is great in the context of thinking that risk is increasing across 'all' investment markets simultaneously. Although Gross may be proven correct in his thesis that bond yields will retrace due to the reasons cited, it should be noted that yields have broken the ceiling that has been in throughout most of 2012.

10-year treasury yield

30-year treasury yield

 Lastly the TBT of the inverse 20-year treasury ETF

There does appear to be volume support to the breakout on the TBT, but the yields and a pullback in the price of the TBT should be watched closely for the next move.

MISH is also buying and holding the miners

Political Calculations calls (and has called) it- housing is in a second bubble.

U.S. Median New Home Sale Prices vs Median Household Income, 1967-2013

Taper the Taper Talk- Peter Schiff...... seems like more than few believe that economy is weaker than otherwise thought and that the steepening of the yield curve may have more to do with the repricing of risk across all assets.

Even the Fed's Lacker thinks growth will remain subdued.

The propaganda to make us fear inflation is just that propaganda- don't fear inflation.

The rise and fall of the robot- HFTs rise and fall




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