Chart below is the 10 Year US Treasury Yield Rate (Interest Rate)

the 10 Year Treasury was hanging below 2% for the past 13 months.....and was as low as 1.4%......Now, it is climbing above 2% as the Fed just considers paring back it's buying program.....

As Rates go UP>..........bonds will go DOWN.

 

Normally, even as rates go up, the stock market could hold it's own, or even continue up.

 

Will that happen THIS time???

For the past coupel years, 10 Year Treasuries have been at 250 year LOWS....interest rates around the world are at 250 year lows.     THAT'S TWO HUNDRED AND FIFTY YEAR LOWS !!!!!   Rates CAN'T stay LOW FOREVER!! 

 

Alot of worry about the Fed CEASING to buy $85 Billion of US Bonds each week. (month?)  And, IF they do cut back, will that:

1) Drive UP Interest Rates?  In order to draw enough buyers to the table IF the Fed Steps away....

and

2) What will that do to the Stock market?  thus, is NOW the TOP for the market or can the market continue to climb into new record terratory?

 

Last week it was Japan's turn for a bad hit.

Are we next?    Is Europe Next?

Let's face it.....NOTHING has been "fixed" in the last 5 years........the world's financial system is just as fragile (?) as it was then.......the BIG banks are STILL.....TO BIG TO FAIL.........TOO BIG TO FIX.....  TO BIG TO BRWEAK UP....

TIME WILL TELL.........

TICK TOCK....

YFIC,

RAndy