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RE: Stocks And Bonds Are At A Major Crossroad, Something Has To Give. By Gregory Mannarino
while we are 7? years into a bull market in shares it is not much like previous ones. It has been slow and tempered by sluggish markets in europe. with this slow movement there still a lot of money that is trying to find a home. So I think there is room for the rally to continue in both the bond and stock market for a while yet, up to 2 years.
And I see it more likely that a revitalized europe will give a shot in the arm to the us stock market and it is bonds that will give way
I agree. You can have both if people are fleeing out of cash. Look at crypto currencies. The Ruble is up versus dollar, bond yields are down, stock prices are up nominally. The yields and stocks can be where they are if you know that people are fleeing the dollar. I disagree this time with Greg both can occur at same time. We are in new territory normal rules may not apply in this situation.
My understanding is that a large part of the money fleeing into cryptocurrencies, especially Bitcoin, is the Chinese trying to get their cash out of China before it is too late since the Chinese government is restricting the flow of the yuan out of China. I don't understand why they are restricting the flow?
I know that the Chinese are having money laundering issues. It is one reason for elevated housing prices in places like Vancouver B.C. They are hiding the money by parking it in housing. Then Canada started increasing the tax on foreign purchases of housing. They did this in an attempt to deflate the price increases. So they want to park their money somewhere so it started working itself into crypto.
Check my weekly silver calls every Sunday (today) with updates during the week on my blog guys. Cheers.
I also follow Greg for fundementals, but i use charts to trade.
