Does This Bond Breakout Mean THE Top is In for Stocks?

Will this time be different? May 17, 2021 UNSUBSCRIBE | ARCHIVES Does This Bond Breakout Mean THE Top is In for Stocks? The Grave Has Already Been Dug Reader, you’d have to be blind not to see that the stock market is completely divorced from the economic reality… We have record unemployment, the millions of jobs lost in the pandemic aren’t coming back, and now Biden and Co. are running up the debt faster than any administration in history… And as the stock market continues to hit new highs… the REAL economy digs itself deeper and deeper into a recession… But you can’t fake a recovery… Which means Reader, that the grave has already been dug… And the stock market is just a deadman walking… All it would take is a tiny push to send us spiraling over the edge into the abyss. It looks like we just might get it today. [Click here to see why we might be on the verge of the biggest stock market sell-off in history and how you could protect yourself.] Dear Money & Crisis Reader, Last week I outlined how inflation has led to the yield on the 10-Year U.S. Treasury Bond breaking above its long-term downtrend for only the second time in 40 years (red circle in the chart below). As I mentioned at the time, the 10-Year U.S. Treasury is the single most important bond in the world. The yield on this bond represents the “risk free” rate of return for the ENTIRE financial system. This is literally the level against which all risk assets (stocks, commodities, real estate, etc.) are priced. The last time the yield on the 10-Year U.S. Treasury broke out to the upside was in 2018. That’s when stocks took a nose-dive, dropping 20% in a matter of days: As I also noted last week, there is a HUGE difference between what was happening in 2018 and what is happening now, however. July 14th: America's Financial Extinction Event? The election is over… The corrupt media declared Joe Biden the winner… And that bad news is about to get a whole lot worse… Because the prophetic analyst who predicted the subprime mortgage meltdown… the financial crisis of 2008… and Brexit… Just issued another shocking prediction… If you and your family are not prepared for what he says is coming your way on July 14th… You need to take action now. Click here for the full details. In 2018, the Fed was RAISING rates and shrinking its balance sheet. This time around, the Fed has rates at ZERO, has promised not to raise them for two years, AND is expanding its balance sheet by $125 billion per month. Put another way, last time, the stock market drop was occurring as a result of Fed actions. This time it’s the result of Fed IN-action. And since Fed inaction means letting inflation run hotter and hotter, (which only makes bond yields rise more), we have to ask ourselves… Is THE top in for stocks? We’ll assess that in tomorrow’s article… Until then… Best Regards, Graham Summers Editor, Money & Crisis Check. Check. Check. Passed all tests. This is a blueprint of a prototype designed by a group of engineers at Washington. The prototype was recently put to test and it “Passed all Tests”. The engineers say it can deliver speeds never seen before in a gadget of its size More importantly, it can help deliver a small fortune to early investors. The prototype is just one small part of a massive project that will disrupt a $2 trillion industry. As the project is spearheaded by the world’s second-richest man... billions of dollars are being pumped into it. To see how this project could help turn your nest egg into a small fortune Click here. 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