market overview, page-15

Interest rate rises are going to kill this equity market and stop the US economy’s brief expansion. In the last few years the bond traders (bond markets) didn’t believe the Fed on interest rate forecasts/direction. Now they are becoming aligned so very little to stop rates rising further. Asset prices are set to fall as the cost of servicing them increases. The days of zero interest rate money where you could invest in any old story are disappearing. Now you need to think about what you’re investing in because debt comes with a price tag, consequences.

It’s a little like unprotectected sex during the flower power era, zero to negative interest rates were like the days of consequenceless sex, no unwanted pregnancies because of an assortment of new forms of contraception, no sexually transmitted diseases that could kill you. Then the AIDS virus came along. Suddenly consequences arrived. The action on DJIA in the last two sessions shows that volatity is probably here to stay. Esh

P.S. I don’t think consequenceless is a word, just made it up. Meaning having no consequence.