Mike's Daily Comment

Interest Rates Are Heading Higher

The evidence continues to mount that the 35 year bear market in US bonds is over, interest rates are heading up and the implications are dramatic. For example,  the rate on a 10 year US bond is 2.37%. Compare that to the rate of a 10 year German bond of .35% and you know why German money is flooding into the US driving the dollar higher and other currencies down

…also from Michael: The Main Investment Theme For the Next Decade

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Interest Rates Are Heading Higher

Transcript:

rates-upInterest Rates Are Heading Higher

The implications of a change in the interest rate trend would be profound, and the evidence continues to mount that the 35-year bear market and bonds is over in the US. In other words the low in interest rates is in. 

The US 30-year bond prices have clearly broken down and the 10-year bond looks to be on the same path. I’ll give you just one quick example of the implications before maybe you nod off to sleep. The rate on a 10-year US bond is now 2.37%, almost 3% on their 30-year bond. Now think about this. The 10-year raid on a German bond is only .35% soyou don’t have to have a finance major to see the incentive for German money to start coming into the US pushing the US dollar higher, and other currencies, including the Loonie and the Euro, lower. That’s what’s been happening in the last week with the Loonie dipping under 74 cents.

 
 The drop-in bond prices is estimated to have cost investors 1 trillion dollars in the last week alone! At the same time the estimated 9 trillion in debt of emerging market countries that have their debt denominated in US dollars is becoming unmanageable as their home currencies decline along with their economies. 
 
 As I said, this is a really big story. There’s a 152 trillion dollars in global debt including 16 trillion in negative yield debt, so a change in interest rates will have major, long-term repercussions.
 
Michael Campbell
Moneytalks.net
 
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A Historical Change

The common theme found in Hillary Clinton’s loss is that it wasn’t their fault that she did. In spite of overwhelming odds, Donald Trump prevailed. The reason? Hillary lost because everything has changed.

…also from Michael: The Main Investment Theme For the Next Decade

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Let Us Remember Freedom Is Always Under Assault

Today we honor the soldiers who gave their lives for Freedom. Too bad that the assault on freedom continues, on our University Campuses, via laws that we are entangled just in case we might hurt ourselves. We are along way away from the very freedoms citizens had even 50 years ago, much less 100 years ago.

 

….speaking of freedom: Nationwide anti-Trump protests rock the US

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Nationwide anti-Trump protests rock the US

Anger in Chicago, New York, Oakland, Pittsburg and other cities protesters carry signs saying “Not My President”. The Deplorable’s Act With Class & Bernie Sanders says it best in this comment

…also Michael’s Mid-Week Comment: Donald Trump = It’s The Biggest Sc*w You to the Existing Elite, Especially the Media

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