Everyone is Chasing Higher Yields and Asset Prices

What is there to figure out?

  1. The Fed is raising short rates and rolling off balances as they should.  We have had easy money for way to long.
  2. Gundlach and Gross think they have figured out how this works, you just have to be short bonds.
  3. What should be of concern to this crowd?

A) Stock prices topped on January 25, 2018.

B) The Yield Curve flattening broke out on March 14, 2018 and is continuing, reaching its lowest level in this cycle yesterday.

C) The Ten year yield topped out on May 18, 2018.

D) Commodity prices played catchup and topped out a little later on May 24, 2018.

 

And everyone sits around complacently on CNBC and Fox News.   What is not to love about this scenario.

 

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