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Elite funds prepare for reflation and a bloodbath for bonds
Posted: Tue Nov 24, 2015 6:35 pm
by Ad Orientem
http://www.telegraph.co.uk/finance/econ ... bonds.html
In the eurozone, the M1 money supply is rising at a blistering pace of 11.9pc.
Hmmm.
Re: Elite funds prepare for reflation and a bloodbath for bonds
Posted: Tue Nov 24, 2015 8:08 pm
by barrett
That article is all over the place.
A few quotes:
"Caution is in order. The investment graveyard is littered with the fund managers who bet against Japanese bonds, only to see the 10-year yield keep falling for two decades, plumbing new depths of 0.24pc this January."
"All the stars are aligned for an end to the deflationary supercycle, and therefore for an end to the 35-year bull market in government bonds."
"With equities already at nose-bleed levels it is hard to know exactly where to seek refuge. Wall Street's S&P 500 has been on a blinder for nearly seven years, and is now hovering near an ominous double-top."
"The Norwegian Pension Fund, the world's top sovereign wealth fund, is rotating a chunk of its $860bn of assets into property in London, Paris, Berlin, Milan, New York, San Francisco and now Tokyo and East Asia. "Every real estate investment deal we do is funded by sales of government bonds," says Yngve Slyngstad, the chief executive."
"The UBS bubble index of global property is already flashing multiple alerts, with Hong Kong off the charts and London now so expensive that it takes a skilled worker 14 years to buy a broom cupboard of 60 square metres."
So, basically, something bad is about to happen but he's not sure what.