Get Out Of Crypto Cannabis Bubble Before It Pops And Move Into Bargain Basement Miners

Summary:

1) 2018 has seen so much volatility in the equity and bond markets after going straight up since 2009.

2) "Everything" bubble is simply the result of record low negative real rates manipulated by Central Bankers to prevent deflation by all means possible.

3) The ending of QE combined with increasingly inflationary concerns has sparked the US to start raising rates.

4) Unwinding of easy money policies could be quite painful.

5) Stay away from margin and company's with any debt on their books.

One of the most overlooked stories in 2018 has been the volatility in equity and bond markets.  The "everything" bubble is simply the result of record low negative real rates manipulated by Central Bankers to prevent deflation by all means possible.  In 2008, the US banks were on the verge of collapse, the Fed since that time has tried every effort to protect the economy with easy money policies.

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The result since 2008 has been remarkably effective.  Unemployment in the USA is at record lows only ten years following the government bailouts of banks and the auto sector.  The real estate foreclosure crisis has been completely turned around.

We must not forget that for every action there is a reaction.  The unwinding of easy money policies could be quite painful.  The ending of QE combined with increasingly inflationary concerns has sparked the US to start raising rates.  Bond yields are now the highest in many years spiking higher taking the investment world by storm.  Real interest rate hikes are happening for the first time in many years.  The Fed has started warning investors about rising risks most notably recently with Deutsche Bank.

10-YR YIELDS 89-

First hit is now Italy who has always lived the sweet life heavily indebted.  Next will be Greece or maybe Spain or Portugal and the PIIGS as interest rates increase.  Don't worry about Spain, Greece and Italy they will be bailed out by the EU again with another lifeline.  Instead, be concerned for many young people living in debt.  They may have jobs now with record low unemployment.  Nevertheless, in many cities such as NYC, LA and Miami the average teacher can't afford a place to live.

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Disclosure:  I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. ...

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