Salient to Investors:
George Kesarios at capital.gr writes:
- Stocks will repeat 1999 and rise to one big bubble as a result of the fixed income exodus, and even if the US economy does not perform, unemployment remains at 7%, and corporate profits stall. Equities might feel the pinch when yields stabilize or yields start going south once again, but that is several years out.
- The flow of money from fixed income to equities will be vast. Money exiting foreign bonds will mostly flow into US equities, with Europe second.
- Shorting anything when an avalanche of cash is flowing into equities is not recommended.
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