Submitted by Lance Roberts via RealInvestmentAdvice.com,
RALLY FAILS, ALERTS RISE
Last week, I discussed the boost the market received as the BOJ made an unexpected move into negative interest rate territory combined with end of the month buying by portfolio managers. To wit:
Almost one year ago, in March 2015, we explained how "The Fed's Artificial Steepening Of The Yield Curve" has resulted in many unexpected consequences, the most important of which has been the erroneous interpretation of the yield curve as a leading recessionary signal. As said back then, "the artificially steep yield curve is a reflection of policy intent not economic reality....
By EconMatters
We are near the low in bond yields for the year, and with the global markets selling off but the employment numbers holding in there, we have a real conundrum for bond investors.
https://www.youtube.com/watch?v=WlE54fg0WtA
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Iran enjoys trolling the United States. In fact, it’s something of hobby for the Ayatollah, who has maintained the country’s semi-official “death to America” slogan even as President Rouhani plays good cop with Obama and Kerry.
According to Morgan Stanley's European equity strategist, Graham Secker, we may have just hit peak bearishness. However, does that mean that a rebound in risk sentiment is imminent, or is this just the beginning of a multi-decade mean reversion, one that will seek to unwind years of central bank intervention, and push risk assets to their ex-central bank prop fair values?
We don't the answer just yet, although it seems unlikely that after one humiliating episode in recent months for the ECB, Fed and BOJ, each, they will simply pack up and go.