The “Bond Conundrum” Is Driving Markets To The Edge

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All of the big indexes got rocked to the downside today. On the surface, the market had a “good news is bad news” freakout about strong December jobs gains. We’ve seen this behavior before.

Last week, in fact, I invited traders to “enjoy the bounceback… and get ready for another smack.”

And that’s what we’re getting right now - what we’ve been getting for most of the week.

The thing way down in the belly of the beast that is smacking this market… is bonds.

Now, I know plenty of people don’t trade bonds. I do, but a lot of people don’t. But regardless of whether you’re trading them, they’re what’s killing stocks.

“You might be done with bonds, but bonds aren’t done with you” is how I’d put it.

They’re stuck in a wild feedback loop - and I’m going to explain why that’s happening and, more importantly, what you can do about it. Watch…

Video Length: 00:24:27


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Disclaimer: This article is republished from The Conversation under a Creative Commons license.

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