Lower and steady producer price index shows inflation not a problem – why did bond market collapse?
Peter Oberois
Jun. 14, 2007

The producer price index data shows inflation is not a problem. But the bond market collapsed. The rates shot up on the long end. Many investors are wondering what is happening?

Bond market is definitely watching the inflation. But, these days, Asian central banks hold US Treasuries to a sizable extent. The bonds fell because the central banks decided to reduce the excess liquidity out there.

Bond market collapse can be short lived because the Fed will soon realize that the rate hikes and longer end yield spike has caused the real estate market to collapse.

The inventories of unsold homes are actually skyrocketing. Fed is hoping a bottom in real estate by end of summer. In August when they realize real estate is in a bigger mess than they could ever think of, they will start lowering rates.

Your home price is plunging right now - what can you do to protect your biggest financial asset?
Ashley Parker
You must learn to protect your home equity. The recession is imminent no matter what those Wall Street gurus say. Real estate trouble always precedes massive economic downturn. You must pay down your loans.
READ MORE>>

Retiring healthy, rich and early – are you ready to learn the tricks? Futures and options can make it for you
Sondra Johnson
Always remember, you want to use time as the tool to make money. As these options expire, they take the future. The extra premium stays with you for your rich and early retirement.
READ MORE>>

Falling copper and steel prices point to worldwide recession – how do you make money as the economy goes on negative GDP growth?
Karen Zuba
You can make even 200% a year in bear market with little risk. You have to learn to use options, futures and other derivatives. ETFs are not the answer. ETF will suffer enormously.
READ MORE>>

Heavy insider selling patterns suggest after making one more high the stock market will go down more than 25%
Sam Adelton
The Dow most like will hover around 11,000 by end of 2007. The downtrend will not start unless the major indices make one more new high with significant momentum divergence.
READ MORE>>

Lower and steady producer price index shows inflation not a problem – why did bond market collapse?
Peter Oberois
The producer price index data shows inflation is not a problem. But the bond market collapsed. The rates shot up on the long end. Many investors are wondering what is happening?
READ MORE>>

Increasing Initial Jobless Claims sets the trend for degrading job market – is it time to buy the Treasuries?
Anila Blaka
The central banks coordinated the efforts of selling US Treasuries to take the liquidity out from the system. US Treasuries felt the shock first because the US bonds markets are most liquid.
READ MORE>>

What happens by end of 2007? Ten-year note yields 4.5%, Dow Jones Industrial Average at 11,000 and Real Estate is down 20%
Sam Adelton
The market is slowly declining on a daily basis. Dollar is steady at a low level. The budget deficit is projected to rise sharply due to lack of revenue. The trade deficit is steady at a much worse level.
READ MORE>>

MORE ARTICLES >>