Morning Thoughts - Daily
Published on Dec 20, 2016
There is a record bubble in bonds, and money manager Michael Pento warns, “Where’s the 10-year Treasury right now? It was 1.3%, and now it’s around 2.6%. We’re going to 4% on the 10-year Treasury. That, by definition, is an absolute bursting of the bond bubble. The problem is this: All assets are priced off of the ‘risk free’ rate of return, ‘risk free’ rate of return on sovereign debt. All asset prices were priced off 1.3% of the 10-year Treasury, or a negative 40 basis points on the Japanese 10-year, or negative yielding German bunds, all assets, and yes that includes real estate and stocks. So, the bond bubble is epic. It is that big in proportion, and it is now bursting.”
Pento goes on to warn, “The real estate market is starting to go off-line. If you look at new home starts, they were down 19% in November month over month. There is no more refinancing market. It’s gone off-line. The initial purchase applications have flat lined. . . . As the housing market goes, so goes the economy. While the Dow and the S&P 500 have surged after November 9th, after Trump was elected, emerging markets are down 8%. . . . The emerging market economies and their currencies are crashing, and that is where I see the epicenter of the bubble breaks.”
In closing, Pento says, “This stronger dollar and this rise in Treasury yields is not going to last very long. They are going to have to reverse course. When they do, they are going to temporarily bring that yield back down. They are going to create unprecedented inflation like you have never seen before--even worse that the 1970’s. You are going to want to have gold at that juncture.”
Join Greg Hunter of USAWatchdog.com as he goes One-on-One with Michael Pento of Pento Portfolio Strategies.
All links can be found on USAWatchdog.com: http://usawatchdog.com/early-2017-rec...
Comments from Benjaminis: When we ignore the realities and do not prepare then we pay the price. I used this as my morning thoughts since what is happening today in the financial markets has been highlighted on this thread since December 3, 2016 when I started it.
I now am going to address the remarks that I read this morning from vladimir8686 not in a personal way towards him in any way, just to make a very important point about what I am trying to teach here.
Most people have programmed themselves to think in a certain way and that is called human nature. The importance of having an open mind to new things is most important. The most important thing that all traders need to learn is to have control of your EGO. Your EGO states that it is YOU who is right and everyone else needs to be wrong. Therefore YOU whoever you are will find it most difficult to learn things in a different way.
Again my remarks concerning vladimir8686 can apply to many others. When I first read his reply this morning my first reaction was to just pass it by. Then I saw an excellent reply by piphunting and I went to take care of other matters in my life. Now I can reply to him and share my Morning Thoughts with anyone that comes to this thread to hopefully learn new things.
The reason that I had no interest in replying then was because I had no idea how to do it. Then it became very clear to me what the problem was and what the solution is. With NO DISRESPECT to vladimir8686 , what he did is what people do to make their point and only their point. THEY CHANGE THE SUBJECT TO DEBATE and that will never solve the problem since we need to learn with an open mind not debate.
Now I can give answer in a proper manner to everyone here. To do that I will just say since it has been said almost from the start of my thread on Money Flow Method and Risk Management. In order to achieve your goals of making money in the business of trading Forex then you need to learn all the elements that make up the whole package. Some people just are not capable for whatever personal reasons that they have.
The absolute proof of that is the excellent results and harmony that exists on our thread and that CREDIT goes to all of you that have got to this point with great results. The interest and the desire and the ability and the investment of time and effort is there so then the success is there.
The ADP number just came out and it was below expectations. The Dow Futures were down before this news came out. We see overnight now what happened in China and where USD/CNH is at the moment. We saw what happened to USD/JPY and what happened we were prepared for with our overall plan of action.
All your positions should be closed before the end of the day as we await a complete unknown that will move the markets.
That is Non Farm Payroll (NFP) coming out at 8:30 AM on Friday , January 6, 2016.
As always your feedback is appreciated and needed so we all are on the same page of the book of life and Forex trading that WE are writing together.
Benjamin
Published on Dec 20, 2016
There is a record bubble in bonds, and money manager Michael Pento warns, “Where’s the 10-year Treasury right now? It was 1.3%, and now it’s around 2.6%. We’re going to 4% on the 10-year Treasury. That, by definition, is an absolute bursting of the bond bubble. The problem is this: All assets are priced off of the ‘risk free’ rate of return, ‘risk free’ rate of return on sovereign debt. All asset prices were priced off 1.3% of the 10-year Treasury, or a negative 40 basis points on the Japanese 10-year, or negative yielding German bunds, all assets, and yes that includes real estate and stocks. So, the bond bubble is epic. It is that big in proportion, and it is now bursting.”
Pento goes on to warn, “The real estate market is starting to go off-line. If you look at new home starts, they were down 19% in November month over month. There is no more refinancing market. It’s gone off-line. The initial purchase applications have flat lined. . . . As the housing market goes, so goes the economy. While the Dow and the S&P 500 have surged after November 9th, after Trump was elected, emerging markets are down 8%. . . . The emerging market economies and their currencies are crashing, and that is where I see the epicenter of the bubble breaks.”
In closing, Pento says, “This stronger dollar and this rise in Treasury yields is not going to last very long. They are going to have to reverse course. When they do, they are going to temporarily bring that yield back down. They are going to create unprecedented inflation like you have never seen before--even worse that the 1970’s. You are going to want to have gold at that juncture.”
Join Greg Hunter of USAWatchdog.com as he goes One-on-One with Michael Pento of Pento Portfolio Strategies.
All links can be found on USAWatchdog.com: http://usawatchdog.com/early-2017-rec...
Comments from Benjaminis: When we ignore the realities and do not prepare then we pay the price. I used this as my morning thoughts since what is happening today in the financial markets has been highlighted on this thread since December 3, 2016 when I started it.
I now am going to address the remarks that I read this morning from vladimir8686 not in a personal way towards him in any way, just to make a very important point about what I am trying to teach here.
Most people have programmed themselves to think in a certain way and that is called human nature. The importance of having an open mind to new things is most important. The most important thing that all traders need to learn is to have control of your EGO. Your EGO states that it is YOU who is right and everyone else needs to be wrong. Therefore YOU whoever you are will find it most difficult to learn things in a different way.
Again my remarks concerning vladimir8686 can apply to many others. When I first read his reply this morning my first reaction was to just pass it by. Then I saw an excellent reply by piphunting and I went to take care of other matters in my life. Now I can reply to him and share my Morning Thoughts with anyone that comes to this thread to hopefully learn new things.
The reason that I had no interest in replying then was because I had no idea how to do it. Then it became very clear to me what the problem was and what the solution is. With NO DISRESPECT to vladimir8686 , what he did is what people do to make their point and only their point. THEY CHANGE THE SUBJECT TO DEBATE and that will never solve the problem since we need to learn with an open mind not debate.
Now I can give answer in a proper manner to everyone here. To do that I will just say since it has been said almost from the start of my thread on Money Flow Method and Risk Management. In order to achieve your goals of making money in the business of trading Forex then you need to learn all the elements that make up the whole package. Some people just are not capable for whatever personal reasons that they have.
The absolute proof of that is the excellent results and harmony that exists on our thread and that CREDIT goes to all of you that have got to this point with great results. The interest and the desire and the ability and the investment of time and effort is there so then the success is there.
The ADP number just came out and it was below expectations. The Dow Futures were down before this news came out. We see overnight now what happened in China and where USD/CNH is at the moment. We saw what happened to USD/JPY and what happened we were prepared for with our overall plan of action.
All your positions should be closed before the end of the day as we await a complete unknown that will move the markets.
That is Non Farm Payroll (NFP) coming out at 8:30 AM on Friday , January 6, 2016.
As always your feedback is appreciated and needed so we all are on the same page of the book of life and Forex trading that WE are writing together.
Benjamin
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