Crashes always seem to come out of nowhere. But, in hindsight, we realize that all the elements for a crash were in place months before prices fell.
There is one important thing we all depend on that won’t be nearly as good as it was in the “good ol’ days” anytime soon. That’s the yield curve.
As the Federal Reserve is set to see a new leader, all eyes will continue to watch this one area that could send shocks in both the bond and stock market.
The Fed’s decision to stay on a path of raising rates will have implications throughout the interest-rate world, including the high-yield debt market.
Being hungry for yield-related assets is one thing. Throwing all caution to the wind when seeking yield is another.
I don’t know when the bear market in bonds will start, but I do know that investors will suffer terrible losses when it happens.
The Fed is allowing big banks to treat municipal bonds as safe, high-quality assets for emergency reserves. But once you’ve read up on Ramapo, New York, “safe” no longer comes to mind.
Investors cheered for the Fed’s first rate hike in nearly a decade, but it’s about to turn ugly. Learn what sector the rate hike is set to kill…