Look at who just warned “What’s coming could be quite a shock.”
May 12 (King World News) – Peter Boockvar: According to AAA, the average gallon of gasoline skipped right to $3.01 yesterday, 2.3 cents, helped by the pipeline problem but it was headed there anyway. It’s the 14th straight day of gains. That is the highest since October 2014. Yeah Fed, you are getting the inflation you want and sticking it to those least able to afford it.
There is more Fed speak today but from members that we’ve already heard from over the past few days. Either way, they all think the same, outside of one or two, and full speed ahead remains their path. Bullard yesterday in particular on CNBC danced like Tchaikovsky around Sara Eisen’s question about ever rising home and rental prices and why are they still buying MBS. Speaking of which, rents will be a key part of where the CPI ends up today…
New interview from legend Doug Casey discussing gold, silver and
global chaos! To listen click here or on the image below.
What’s Coming Could Be Quite A Shock”
Wow is former NY Fed President Bill Dudley prolific now with his thoughts on interest rates, continuing to tell us what he really thinks now that he is now longer part of the Federal Reserve institution. He wrote a piece today for Bloomberg Opinion titled “The Days of Low Treasury Yields are Numbered.” In it he said:
“The 10 yr US Treasury note is part of the foundation of global finance. Its yield helps determine the cost of mortgages, the value of US stocks and how much the US government must pay to service its growing debt. I think markets are severely underestimating how much that yield is likely to rise in coming years.
Anyone who has been in finance for less than a decade has rarely seen 10 yr Treasury note yields above 3%. So what’s coming could, for many, be quite a shock. The secular bond bull market that began nearly 40 years ago is finally ending.”
I wonder if he’s having coffee with Jay Powell anytime soon.
In Europe, the March Eurozone industrial production figure saw just a .1% m/o/m gain, well less than the estimate of up .8% and February was revised down by 2 tenths. Selective shutdowns in March and clogged up supply chains were key factors in the data. Either way, the number doesn’t move markets. After yesterday’s selloff, European bonds are bouncing slightly. The euro is giving back yesterday’s increase vs the dollar as the dollar index is now playing a game of chicken with the 90 level.
***To hear one of legend Rob Arnott’s best interviews ever (oversees $160 billion), where he discusses how investors can protect themselves from skyrocketing inflation and much more CLICK HERE OR ON THE IMAGE BELOW.
***To hear Alasdair Macleod discuss the gold and silver markets and what to expect next CLICK HERE OR ON THE IMAGE BELOW.
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