A Few Reasons Why The Recent Stock Market Euphoria May Be On Borrowed Time. By Gregory Mannarino

in money •  8 years ago 

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Despite the irrational euphoria associated with a stock market which is now at record highs, cash is still making its way over to the perceived safety of bonds-with the 10 year yield now sitting at 2.22
The movement of cash into bonds with a stock market rising on lower volume should be considered as a warning sign that this stock market rally may soon run into trouble. Moreover, even the threat of a Federal Reserve rate hike later this month is not stopping the flow of cash into bonds. Keep in mind that the bond market is about to lose it's largest buyer, The Fed., And you would expect that with The Fed. Stepping out of the way cash would be leaving the bond market, pushing yields higher, not lower.

Another reason why we may be seeing cash continue to move into the perceived safety of bonds, might have to do with crude oil remaining under pressure as well.
The stock market is dependent on the price of the crude oil being high, and I believe this is yet another "tell" that the stock market may soon run into trouble.

The weak Dollar, and the flattening yield curve should also serve as clear signs that the recent stock market euphoria may be on borrowed time.

Gregory Mannarino
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Thank you Greg. Make us rich

When the air starts coming out I think money will be running for the exits to gold, silver and crypto.

@marketreport Good to see You Greg... UpVoted !!

Thanks, Greg. Always great to hear from you. If I had any money, you would make me rich... :-)

thanks for keeping on top of the is whole mess for us. Trunp stood up for the little guy today. Scary one guy between us and one world order.

What was it? 3 weeks ago people were talking about a "dead cat bounce?" Now we see just how high that bounce can be - with the MSM and globalist media all beating a dead cat, it's apparently able to bounce 500 or 600 points.

I also hear people talking about how this is a "suckers' rally." Unfortunately, not only is this true, but even more suckers are being led straight into the bond market - where they are about to be slaughtered like the sheeple that they are.

Real Men Own Physical Silver. ;) Do you have the guts to go all in? I did.

Whoa, you're all in on silver? Respect. To get ahead sometimes we need to do things like this. God knows it's hard enough to even keep our heads above water these days, let alone set ourselves up so that we're not completely screwed when we're at retirement age. I wish I went all in many times in my lift. I was conservative with bitcoin, I was conservative with my share portfolio when I had it. Those investments I believed in though. I'm not sure personally that during our lives silver will stop being manipulated. I hope I'm wrong (because I don't have any!) Best of luck man!

Can't say I would go all in on anything, I have to diversify. I think silver will have to move up, may even be as some say become either unable to buy or illegal to have.... a very valuable industrial metal. Gold is hoarded, some used, but silver is used much more, and so becomes nessessary . Who knows all in could be a win, at this point nobody knows how bad, just that things are going to get worse...

Perhaps people want their Cash into "anything" but Cash...
@pocketechang

Anything that isn't paper FIAT is safer, IMHO.

Thank you for your insight as always Greg @marketreport. I wonder to what extent you see this flight to sovereign debt from shares in the context of a rallying equity market in other areas.

Other markets seem reluctant to follow the US higher. Do you see this as a US centric warning or do you see it gloablly relevant due to the potential for spillover?

I think there is something called the exchange stabilization Fund that was started decades ago. I wonder if they may tap into that?? Who is the second and third largest buyers of the bond market. I agree that we are on borrowed time and have been for some time. Continue the great work Greg.

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This is the biggest suckers rally in history.

Bonds are backed by mortgage these days.

You heard of ABSs?

Great insight, thanks @marketreport

Watching for that cliff every day, Brother Greg! Thank you for all you do to keep us in the loop. Rock On / STEEM On !

thank you for always keeping us up to date Greg! #lions

@marketreport Liked this post a lot! Check out my page, I have a post regarding current overvaluation, etc. I think you would dig it.

-Steve

Hi Gregory, good article.
Do you think that the inconsistency in the money flow that you are talking about above can be explained with the idea of money not knowing where to go as you were talking about last week or so?

Great post.

All the warning signs are there but the every day guy is still oblivious to the impending disaster

Thanks for the update

Have you seen the Royal Mint Gold? (RMG) It's a cryptocurrency based off gold

I was thinking that the PPT will not allow the market to fold until Soros and the rest of the deep state and power elite abandon their short positions.

Time to go short?

Greg, so the rate hike means what exactly for safe haven assets? Some analysts say that no matter if there is or isn't a hike, it won't change a dime. Can you delve into this please?

Thanks Greg for the stock picks! SLV is doing well for me today. Sometimes I get confused after buying a straddle as to which way the market is going. I feel like a deer in the headlights when it's not obvious as to how long to hang on to both sides and which one to sell. I've sold one side on more then one occasion only to have the stock flip flop and then I was exposed. I do check the Evolution system but it's not always black and white. Thanks for listening. Any feedback out there would be much appreciated

A very good analysis, as we expect it from Greg!

I can't wait to see to consequences of theses bubbles... it will be an historic moment in mankind!

As always Greg has our back and trying to make us some money. Thanks Greg

Thanx for info!!!!