Did China Just Burst the Everything Bubble?
Interest-Rates / US Bonds Jan 14, 2018 - 05:51 PM GMTThe biggest news today comes from China, which has announced it will “slow or halt” US Treasury purchases.
This is the so-called NUCLEAR option: the threat by China to stop buying US debt. And it’s an absolute game-changer.
Yields on the 10-Year Treasury spiked on the news as investors dumped Treasuries.
Source: Blooomberg
This could very well be what bursts the EVERYTHING Bubble.
As I explained in detail in by bestselling book The Everything Bubble: The Endgame For Central Bank Policy, the Fed dealt with the 2008 meltdown by intentionally created a bubble in US Treasuries.
And because these bonds represent the “risk-free” rate of return for the US financial system, when the Fed did this, it created a bubble in EVERYTHING (including stocks).
And now that China is threatening to dump US Treasuries, this could be what bursts the Everything Bubble.
The time to prepare for this is NOW before disaster hits.
On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s to come when The Everything Bubble bursts.
It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here:
https://phoenixcapitalmarketing.com/TEB.html
Graham Summers
Phoenix Capital Research
http://www.phoenixcapitalmarketing.com
Graham also writes Private Wealth Advisory, a monthly investment advisory focusing on the most lucrative investment opportunities the financial markets have to offer. Graham understands the big picture from both a macro-economic and capital in/outflow perspective. He translates his understanding into finding trends and unde74rvalued investment opportunities months before the markets catch on: the Private Wealth Advisory portfolio has outperformed the S&P 500 three of the last five years, including a 7% return in 2008 vs. a 37% loss for the S&P 500.
Previously, Graham worked as a Senior Financial Analyst covering global markets for several investment firms in the Mid-Atlantic region. He’s lived and performed research in Europe, Asia, the Middle East, and the United States.
© 2018 Copyright Graham Summers - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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