The 10-year Treasury yield had crashed to 1.25% recently and gold price spiked up after the FED's meeting because it had dawned on investors that the FED was lying about the US inflation.
The recent crash in US treasury yield showed that something had broken in the financial market which drove the jittery investors to seek a haven in the US treasury market.
We had already provided accurate analyses for the US inflation in our first 3 webcast videos.
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2 comments:
Do you manage your own money or give it to some RM or agent?
Yields going down means investors are not feeling good about the economy & they think there's higher chance for low or even negative inflation in the next 6-12 months. i.e. a significant stock market correction. (HINT: If it really happens & stocks drop -30% --- BTFD!!)
This is in contrast to Aug 2020 - Mar 2021 when yields kept on going higher day after day & everybody was screaming inflation.
As for gold, it hasn't been doing much except being range-bound for the past 12 months. I have a bunch of gold, so I don't mind if it's going to USD3000, but it hasn't happened yet.
Well, let's say that I manage my own money for investments in derivatives because of a conflict of interest for equity investments.
Investors who bought long-term treasuries were not day traders or swing traders. Yes, they bought the long-term treasuries because they didn't feel good about the economy in the future. They didn't feel good because they realized suddenly that there was rising inflation and the FED was lying about the transitory inflation.
Let me accentuate this: There's no way there would be low or negative inflation as stated by you in the next 6-12 months even with another wave of delta variant infection. If you want to know why, please watch my youtube videos about US inflation.
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