Commodity Trade Mantra

All posts under ‘Bond Market’

The Next Financial Disaster Starts Here - Junk Bonds

Investors looking for income have turned to junk bonds. Junk bonds didn’t grow much from 2002 to 2008. But when the Fed cut rates to zero in 2008, junk bond issuance began to take off & the number of junk bond issues soared 483% between 2008 and 2014. Today, some of the savviest investors are starting to place bets against junk bonds. Exit junk bonds today.

Silver Price Lows and Bubble Bond Markets

T bonds & S&P look dangerous, while silver has been crushed during the past 4 years. Which of those three asset classes is likely to perform better between now & Election Day 2016? Which of those assets has no counter-party risk? Two of those assets currently trade near all-time highs, while one is quite inexpensive.

What Do Negative Bond Yields Mean for the Gold Price?

Bonds are no longer trading like bonds. They now trade like commodities. Given that investors often buy gold and other precious metals as a hedge against risk — for instance, when the economy is doing poorly — it will be interesting to see whether this new way bonds are being traded has any impact on interest in such metals.

Fed's Bullard Urges Investors To Sell Bonds (But Not Stocks)

Given the market’s rapid surge to dismissing The Fed’s stock-selling recommendations, we are stunned by the silence of “market defenders” as once again the Fed takes to the airwaves to demand investors sell their bonds. The Fed is desperate for investors to sell their bonds as they are in full panic mode over the broken repo markets.

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