Skip to comments.100% of economists think yields will rise within six months
Posted on 04/22/2014 4:27:01 PM PDT by Red in Blue PA
Economists are unwavering in their assessment of where yields are headed in the next half year.
Jim Bianco, of Bianco Research, points out in a market comment Tuesday that a survey of 67 economists this month shows every single one of them expects the 10-year Treasury 10_YEAR yield to rise in the next six months.
The survey, which is done each month by Bloomberg, has been notably bearish for some time now, with nearly everyone expecting rising rates. In March, 97% expected rising rates. In February, 95% expected yields to climb. And in January, 97% held that expectation. Since the beginning of 2009, there have only been a handful of instances where less than 50% expected rates to rise.
(Excerpt) Read more at blogs.marketwatch.com ...
Once that happens, if it builds some momentum and doesn’t stop short, money will pour out of the stock market.
This means the cost of debt service for the government will explode.
All according to Cloward-Piven-Soetoro.
I know all these people think their portfolios have done well because they are "smarter" than everyone else and "pay attention" more than everyone else.
The real estate agents said the same thing in 2007.
Me...me! Me! (kidding)
“100% of economists” have NEVER agreed on ANYTHING.
You mean they have a consensus, the facts are settled, and the debate is over?
Like all the other BS that the DemocRats orchestrate for their political power, you can be sure this will not happen until after the midterm elections.
When it does happen, they will spin it to blame Capitalism and the free markets.
To save us (again) we will need a leftist DemocRat who will have just become a grandmother.
God save us from these evil fockers.
Yep. The economy is so messed up that a better economy can be devastating for the economy.
When those yields climb a little more, some investors will run to bonds. They’ll play, until some of them take their haircuts. Others will run from bonds. Bond prices will go down quickly with increasing yields (risk). Interest rate increases will go viral and come around to bite stocks. Then more unemployment. Bond collapses are contagious.
Never underestimate the will or the power of the Fed. Their traditional two goals have morphed. Now they are:
1. Keep the banks liquid and solvent, no matter how many bad loans they make.
2. Keep the US Government liquid and ensure interest rates do not rise.
They have no other objectives.
These "economists" must be living in "reality world". It's silly to predict the actions of the new Fed based on that point of view.
I have been shifting my 401 out of the market over the past year. I know in the long run I will be rewarded (until the Gov takes it away from me.). But it’s killing me a little bit to see it shooting up into that orgasmic cloud.