QUESTION: Mr. Armstrong; Thank you for coming to Athens. After the presentation, there were so many questions that the moderator did not have time for. You answered some for the crowd afterwards that I had never heard anyone ever explain. You said Quantitative Easing was not money printing nor did it really increase the money […]

Central banks have been dumping U.S. Treasury bonds because of the debt ceiling problem. The Tea Party will shut down funding if they have their way. This situation illustrates the entire problem. The debt ceiling only ever rises. We will see a rise in taxation and this will help to collapse the U.S. economy and […]

The day for equities peaked in Europe with most core markets up around 1%. The US changed the mood early in the session as the Biotechs took their toll on the NASDAQ and within a short time the index was 1% lower. Main talking point was the weakness of the US Dollar and the recovery […]

The market reaction to the U.S. data on Friday has confused many with both stocks and bonds bouncing into the close. Overnight, the Asian equity markets have continued the positive response. This has also carried into the European opening but interestingly only for equities. In the reaction in the bond markets, we have seen U.S. 10s remain just […]

The peak in real estate may have arrived. At the same time, this reflects the shift away from government bonds. Blackstone Group LP, the largest real estate fund to assemble, has come right on point. Blackstone raised $15.8 billion, creating the largest real estate fund in history. As we have warned, this reflects investment capital shifting into real […]

Asian equities further consolidated the gains today, adding an additional 1-2% on yesterday’s closes. In Europe, early efforts to rally were muted and eventually turned negative as the U.S. session got underway. Dow lost all momentum, and at one stage, had losses of around 200 points. However, the uncertainty within the markets continued when we […]

We have warned that capital is in a flight to quality, therefore creating the bubble in government paper. We also warned that the bond market on the long-term peaked in April/May and that we should expect a further rally in the short-end. This significant move has unfolded right before our eyes. The fact that the bonds have […]

A weak session for Equities in Asia (Nikkei -2.7%), Europe (DAX -1.97%) and the US (DOW -0.5%)had Fund Managers searching for both answers and safe-havens. One market that benefited was the Bond Market with US Treasuries and Bunds both pushing yields back lower. The US 10yr managed a break below the 2.10% yield to a daily […]

Whenever I warn of anything using the word “CRASH”, the newspapers immediately report it as a forecast for a crash in the stock market. This demonstrates that there is no consideration that government can also crash and burn — the perfect example of 100% confidence. Yes, if this week simply closes on the Dow below 16280, then […]

In Asia, the Hang Seng could not climb out of the red all day and eventually closed down –— 0.75%. As always, the Shanghai had a volatile session, initially opening higher, but spent the balance of the day making headway to close at the day’s high of 3157 (+1.91%). The Nikkei was closed for Respect for the Aged Day. Nikkei futures […]