What Does the Bond Market Suspect?

To many, not us, the T-Bond market has been much stronger than expected this year.  Most stock market players believe that an expanding economy will push interest rates higher, i.e bond prices lower.

So what does the strong bond market suspect.  Is this the last gasp, head and shoulders technical top, of the current bond rally which started in 1982 or a pause before deflation and a new global economic market environment sets up?

That is the question.  Risks are increasing for the consumer based growth that started after my parents came back home from WWII.  The economy has matured, and the new growth areas seem to be based on frivolity, best example, Twitter, which will actually probably play a big part if a new economic direction evolves here.  Twitters like “I cannot think what I need to buy today” will rule the day. If one wants to believe in a 72 year cycle, I do, 2017 is 72 years from 1945 .

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