Oof! Bang! Powell!

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All year long, the “sequence” I’ve been suggesting has been along these lines:

  1. The world has never been so choked in debt, with the US along over $21 trillion in hocking and adding a over a trillion per year;
  2. The bond market is in a terribly bearish formation, and bonds should fall;
  3. Thus, interest rates will rise;
  4. Rising interest rates will suffocate the economy;
  5. Equities will, in turn, fall

Well, parts 1, 2, and 3 have been doing just dandy, thank you very much, but part 5 sure has been slow to wake up. Indeed, the Dow Industrials was at its highest point in the history of humanity only a few trading hours ago.

It is thus a pleasant surprise to wake up to this for a change:

Read more at : https://www.investing.com/analysis/oof-bang-powell-200346966

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