Monday, November 20, 2017

Bond Yields and Stock Market risks

"The global economy keeps growing, the inflation rate is still low, and central banks slowly depart from their unconventional, extra-easy monetary policy. Investors buy risk and their attitude toward the risk is optimistic. 

So, right now I don’t see any major threats. But if there is a fast increase in the bond yields, maybe we will see some major correction on the stock market. But I don’t quite believe it. Because of fundamental reasons. Globally, there are a lot of savings, but not much investment spending. 

The markets are also helped by the already-mentioned super-easy policy of the central banks that kept buying bonds and cut bond yields to below zero level. Of course, that does not mean that the banks can sleep peacefully. They need to normalize their actions in a prudent way, in order to adjust to the market expectations."


via www.businessinsider.com/qa-with-nouriel-roubini-bitcoin-is-a-gigantic-speculative-bubble-that-will-end-2017-11