For those (like me) who are always bullish on equities, it is nice to read the equities history.
The Russian Stock exchange got wiped out.
In Austria from 1900 to 2012 – you would have been ripped apart with 97 years of losses
In the US the returns from bonds has been BETTER THAN equities from 1980 to 2012.
The market can be irrational far far longer than you can be solvent.
Do you think all is well in the bonds market? Well, nein. Nyet. No. Nahin.
All the big banks in the US ( GS, JPM, BA) are the big players of US treasury bonds. When interest rates are low, banks have no great choice but to invest in LONGER TERM (do not ask me, the bankers know best). Which means the BANKS ARE NOT INTERESTED …in knowing what happens if INTEREST RATES GO UP….
I think J P M will treat it like a recent loss …of about US $ 50 billion saar…
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