The U.S. government’s borrowing spree will fuel long-running bear markets in both bonds and stocks. From Bill Bonner at bonnerprivateresearch.com:
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Bill Bonner, reckoning today from Youghal, Ireland…
Geopolitical tensions are highly elevated and pose important risks to global economic activity.
~ Jerome Powell, last week
We have no reason to abandon our hypothesis. The financial world shifted in the summer of 2020. Thenceforth, the last shall be first…
We’ve seen how the bond market has been turned upside down, with the world’s safest credit – the US Treasury 10-year bond – losing 40% of its real value. What we haven’t seen is a massive selloff in the stock market. Instead, equity values are being chipped away by inflation.
And while bonds should bounce…inflation might take a break…and stocks might go up…the Primary Trend will probably be with us for many years – bond yields up, stocks down, with inflation going up and down, but not going away.
