Post by Eric Gajewski on Nov 12, 2016 15:37:38 GMT
TradCatKnight: Economic Crisis: Deutsche Warns of Imminent ‘Domino Impact’ for Stocks from Bond Carnage, Soaring Dollar
Latest Economic videos included...
One of the more confounding aspects of the record bond selloff experienced in the past few days, is that it not only left broader equity indices unscathed, but took place as the Dow Jones hit a new record high. This, as Goldman explains, is problematic, given that the ‘low yields for longer’ theme, i.e., the infamous “Fed Model” which was used to justify record high stock multiples purely as a function of record low bond yields, that underpins the valuation of several financial assets is under scrutiny. As Goldman puts it: “the continued focus” on the spike in bond yields “seems to us justified.”
tradcatknight.blogspot.com/2016/11/economic-crisis-deutsche-warns-of.html#more
Latest Economic videos included...
One of the more confounding aspects of the record bond selloff experienced in the past few days, is that it not only left broader equity indices unscathed, but took place as the Dow Jones hit a new record high. This, as Goldman explains, is problematic, given that the ‘low yields for longer’ theme, i.e., the infamous “Fed Model” which was used to justify record high stock multiples purely as a function of record low bond yields, that underpins the valuation of several financial assets is under scrutiny. As Goldman puts it: “the continued focus” on the spike in bond yields “seems to us justified.”
tradcatknight.blogspot.com/2016/11/economic-crisis-deutsche-warns-of.html#more