Authored by Lance Roberts via RealInvestmentAdvice.com,
A recent article out this past week by Russ Koesterich via BlackRock noted that bond yields had not melted-up as “everyone expected.”
Sorry, Rick.
It’s not everyone, just you guys on Wall Street.
Since 2013, I have been laying out the case, repeatedly, as to why interest rates will not rise. Here are a few of the most recent links for your review:
After last week's brief FBI "memogate" inspired volatility spike, some have asked if the resulting market decline (down a "whopping" -0.4% on the week) has made stocks more attractive. Here is the quick answer according to Bank of America: based on the 20 most widely used valuation metrics, the S&P remains significantly overvalued on 18 of 20 valuation metrics, the only exceptions being free cash flow, helped by depressed capex), and relative to bonds, whole yields are depressed thanks to $18 trillion in global central bank purchases.
The stringent capital controls adopted by Chinese authorities on Jan. 1, some of which were specifically designed to curb foreign real-estate purchases, appear to have had their desired effect. To wit: First-quarter property sales plummeted 58% to $4.3 billion, compared with a year earlier, Bloomberg reported, citing data from real-estate brokerage Cushman & Wakefield Inc.
And nationwide, the picture wasn’t much better: Sales dropped 18 percent, research firm Real Capital Analytics Inc. found.
"unknown"
Source: Townhall.com
In a move that will surely light the proverbial lightbulb over Donald Trump's head, Brazilian President Michel Temer, having been officially dragged into Brazil's massive corruption scandal after a record emerged in which he urged the payment of "hush money", said on Saturday he would ask the Supreme Court to suspend its investigation into allegations he was also involved in the carwash corruption scheme, vowing to remain in power.