snippets - 11/09/09, page-11

Hi Redbacka,
A rally in bond yields doesn't necessarily mean a rally in equity markets IMHO.
It could also mean a couple of other things.

1/ Yield on the USD improves [depending on market sentiment on how they see/percieve the market at that time, maybe EUR, AUD negative or positive, in other words AUD could get trashed]

2/ Constant market talk by the Fed on raising interest rates could put selling pressure on the markets.

If the above is half correct then commodties will get trashed as bond yields rally.

We may even see Gold and USD rally together and it won't be the first time in history.

We could also get another credit squeeze as we end a plateau period.

I don't see much ecocnomic growth in any sector, so we may indeed get hyper-stagflation or fill some gaps underneath the market.

Ahh you gotta love the speculation :)