Short Term Treasury Yields Rise = Pain to come

10 Kas 2017

I feel that the bond market is the greatest indicator of the stock market's future. Who else is more concerned about their money than ultra-conservative bondholders? We see in the graph as the short-term Treasury yield rises (in red) from lack of demand and selling off. The sell-off in the short-term treasuries indicates that investors are worried about the future and are purchasing more long-term Treasury bonds (in green). The increased demand and buying of these long-term bonds raises their prices and drives down their yield to bring together an inverted yield curve, where short-term yields are greater than long-term yields. My recommendation and what I am personally doing is selling off all my equity holdings before the end of the year.

I am/we are long TMF & RH.