Rapid Re-Inflation In Interest Rates/Floor For The Stock Market.The rapid re-inflation in long term U.S. interest rates
has caught many flatfooted , and on the wrong side of the trade
in the last few days.
From a bottom at 1.45 %, only a few weeks ago,
the 10 Year Bond $TNX closed today at 1.70 %,
a .25 % Increase in yield, from the bottom, a huge move, in a very short period of time.
The strikingly quick rebound in long term rates could signify,
a potential reversal of fortune, in the ceaseless downward pressure on return going on throughout 2019.
Key Point/And The Bullish Assumption Here.
The rise in long term interest rates could put a significant floor in equity prices, at these levels
as the vast fears of an economic slowdown may soon subside.
The anticipation of a potential new even " manufactured "cycle of growth at this point created at this point in the cycle,
would surely be welcome news to those who may not have blinked fast enough, and just missed the new trend change.
Sell Bonds. Buy Stocks
TNX Last 1.70 % + 4.93 %
THE_UNWIND
9/10/19
NEW YORK