‘Why Does It Hurt When We Unwind?’ Why The Re-emancipation Of Markets Will Be Painful
"This time is different."
The cliché of clichés. The most eye roll-inducing phrase of all phrases that elicit eye rolls. The gold standard of the doomsaying gold bugs. The go-to aphorism for a bear that's run fresh out of ideas.
Stripped of legitimacy through overuse and persistent misapplication, "this time is different" has become the one thing you don't say in polite company if you're at all interested in having any company at all. "This time is different" has become the special doma
Well, what I keep hearing is that a bond sell off will be bad for equities, which is exactly opposite of kocic’s two directions shown above. We have bond sell off coinciding with equity rally toward recovery, or we have bond buying coinciding with equity stagnation toward stagflation. What I don’t see there is a loop around through point 6 and back to point 2… an equity sell off.
Thanks H.
This time is sure is different. Big fat ugly bubble kind of different.
The credit markets – and some smart money managers – are signaling “heads up”. Few folks on Main Street seem to listening.
Person that posted First, I think you may be misinterpreting where we are currently on the chart. We are just before 3 where yields are going up as well as stocks. At some point we will go over the edge and head to 4 and 5 (stocks and bonds selling together). It is at point 5 that the critical policy move will need to take place to send us to either of the 6’s.
At least that is my interpretation of it.
Dude, yields have already hit the floor (point 5), and stocks are ridiculous (point 5). We are at the inflection point. Either we go recovery or stagflation from here, based on kocic’s thinking. My gut says we retrace to point 1 with rising yields and falling equities before heading back into recession toward point 2.
Like this: https://ibb.co/dyJyan
Shit. I’m an idiot. I’ll just go home now.
lol. ok guys, time to go back and refresh your memory on how to read a coordinate plane.