What Just Change?
Though no one in the financial sector dares say this in public, the possibility that central banks can no longer sustain the illusion that risk has been vanquished is now front and center. If risk can't be corralled and quantified, then it can't be offset with any degree of confidence. If risk can't be corralled and quantified, it can't be offloaded onto unsuspecting others without the possibility that the system itself will collapse once the risk that's been piling up in the global machinery manifests.
DYI: All of the world wide central
banks can manipulate markets for only so long for the all powerful Mr. Market will have his way in the end, as world wide assets descend
not just back to their mean but over shoot thus creating their respective average.
Has the U.S. stock and corporate bond markets
put in their tops? Definitely; I don’t
know? What I do know stocks and long
term corporate bonds are so far beyond their respective means purchasing them
makes no sense at all for a long term investor.
However,
long term Treasury securities especially the 30 year bond during any meltdown
will be sought out as refuge from the carnage driving its price higher and it
current yield lower. The other safe
haven will be gold and silver. Silver is
most likely the better play as the gold/silver ratio shows gold over valued [only
in relationship to silver] and the precious metals mining companies remain
reasonably priced despite their bounce off the bottom in 2015.
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