Famed Investor Jim Rogers looks at what’s in store for the US equity markets, provides his outlook for the US dollar, and addresses the Elephant in the Room: Is the 35 – Year Bull Market In Bonds OVER?
Occasionally, a bit of truth escapes…
All asset classes will collapse in tandem when this bursts – an event that will send SHOCKWAVES throughout the global economy:
In A Crucial Market Update, Eric Sprott Explains This Week’s STUNNING and DRAMATIC Global Sell-Off in Long Bonds, and what the implications are for gold and silver prices:
Is the bond market issuing a HUGE WARNING here?
Greg Mannarino issues an alert and breaks down the latest gold and silver trading action…
If Bill Gross is currently getting the heck out of Dodge…
GET OUT OF YOUR BOND FUNDS NOW!
The day of reckoning is coming. I had a “eureka” moment last night when I read the comments by the chief economist of the Bank of England who, presumably unwittingly, warned that the aggregation of derivatives in the derivatives clearing system (primarily a subsidiary of The Depository Trust and Clearing Corporation – aka DTCC) could be “a problem from hell.”
The nexus of the problem is that fact that interest rate derivatives contracts make up the majority of the OTC derivatives.
JP Morgan and Citibank alone have $97 trillion in notional amount of OTC interest rate derivatives exposure.
To put that in perspective, the total size of the U.S. stock market is around $22 trillion. And $97 trillion doesn’t include the leverage that is embedded in these contracts.
Pimco, Black Rock and Fidelity have by far the largest concentration of exposure to this. That’s why the Vice Chairman of Black Rock is going around promoting the idea of a mechanism to bail-out DTCC when the derivatives bombs start to fly.
I was told this morning by someone in a position to know that the regulators are absolutely terrified of this problem and of a total bond market collapse.
The elite aristocracy has at least one rule of morality: they consider it to be in poor taste to not warn in advance of doing something horrible to the middle class . Here, middle class is defined as anyone not rich enough to own his/her own politician – that probably means you.
The latest warning involves what is likely an the eventual onset of a huge derivatives blow-up in a one or several large bond mutual funds. There are reasons I believe that this event may be closer than any of us realize.
So here’ s your warning: GET OUT OF YOUR BOND FUNDS NOW!!
What does it look like when a 30 year bull market ends abruptly? What happens when bond yields start doing things that they haven’t done in 50 years?
If your answer to those questions involves the word “slaughter”, you are probably on the right track.
Right now, bonds are being absolutely slaughtered, and this is only just the beginning.