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Financial news I consider important, with my opinion, which is worth as much as you paid for it.
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Sunday, June 2, 2013

Market Crash closer than expected...or is it?

The Japanese bond market is breaking, with Japanese interest rates accelerating higher.
The Japanese stock market has had some nice sell offs last week.

The European union cannot fix their issues, and Greece just predicted 2007 employment level will be attained in 2076.

The US stock market has hit a nice parabolic blow-off rise last week, reaching extreme levels never seen.

All of this adds up to a market crash is quite possible around the corner.  But never fear, this will be followed by even MORE extreme responses by the central banks to save the economy by easing money creation.  Overall this isn't a bad thing per say, it just we don't know how this ends.  I do believe that gold miners after the extreme sell of of GDX down to 26 is approaching a bottom.  MAYBE another 20% lower? maybe?  I can't see it breaking 19 a share like it did in 2008.  In any case, we are closer to a bottom than 2 months ago.


I will caution all readers.  If this plays out badly for the world governments, we could see that this next leg will be one that has rising interest rates at it's heals.  The US bond market has seen rates drop for 25 years straight!  30 year bonds are near 3%, so this is also near a all time bottom.   For who would lock in at 1% for 30 years?

What doesn't go down, usually goes up.  If rates start to go up, all hell will break loose on our debt based society.  If you own bonds, it will be very hard to get out without taking a substantial loss.

Good luck, we all need it.




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