Financials Matter

"It's Not Just About Finance"

Think Rates Haven’t Risen? Think Again

Amidst all the madness shoved down our collective throats 24/7 the Presstitutes want you to think that interest rates haven’t risen.

Au Contraire.

It’s just a smoke screen by the Boyz in the “Club” to keep you from seeing how our bond market has “Crossed the Rubicon” and is accelerating towards destruction.

Case in point:

Last October, the Ten-Year Treasury (Symbol TNX) was yielding 0.75%.

Yes, you read that right…less than 1%.

Today it’s yielding 1.67%

Do the math.

That’s a 92 basis points increase.

In Plain English…that’s over a 122% increase.

The 30-Year Treasury (TYX) isn’t as bad.  But it’s increased from 1.50% to 2.13%.

In Plain English…that’s over a 42% increase in yield.

But no one in their right mind wants to tie up their money these days for a measly 2% yield.

Cue up:  The European Bond market which has been giving investors NEGATIVE yields since 2014.

This begs the question, “Who would put billions into negative yielding bonds where you pay the government to hold your money?”

Answer: Hardly anyone.

And this is why Europe’s bond market has been destroyed.

The major buyers of their negative yielding bonds are…Wait for it…The European Union.

And the only reason they can do it is because they’re the only ones who can print money.

Kinda like our FED.

 

Still Think Rates Haven’t Risen?

Many people don’t believe that our rates are rising because our stock market is, once again, hitting new all-time highs.

Ironically (or NOT) we need interest rates to rise.

Huh?

That’s right.

Historically a rising interest rate environment is one of the best signs of a healthy economy.

But…And this is a Very Big Butt…

Rising rates is also the death knell for our bond market.

Why?

All those years of forced lower rates – in order to bailout the Wall Street Banksters – has doomed us into printing TRILLIONS of new dollars.

Which, in reality, destroys your purchasing power through Stealth Inflation.

For more on how stealth inflation destroys your wealth be sure to read our newsletter (HERE).

In the meantime – and as our bond markets disintegrate – you’ll see significant upside movements in the stock market.

And this will extend The Most Hated Bull Market in History.

So, instead of worrying about it, learn how to profit from it (HERE).

And don’t miss out on the opportunity of a lifetime.

Share this with a friend…especially if they own bonds.

But tell them:  We’re Not Just About Finance.

https://www.financialsmatter.com/about/

 

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