Stocks begin down trend as bonds begin up trend - bigger trade deficit bullish for bonds
Sam Adelton
Apr. 13, 2007

The bond market is showing signs of a solid upward potential. The stock market has valuation problems as deflation take hold of the economy.

The wider trade deficit will bring dollar to its knees. It is a buying opportunity of the currency. The larger trade deficit is actually bullish for dollar. The steadily growing foreign exchange reserves of China are creating a tremendous demand for US Treasuries.

The stock market at the same time is having trouble with projected earnings of 2008. It seems 2008 earnings will start faltering as the US economy goes slowly from mild deflation to massive deflation.

A great buy opportunity for US Dollar as trade deficit widens
Peter Oberois
Analytics and quantitative models predict with more than 90% confidence level a 30% gain in US Dollar and Dollar based debt assets in the next two years.
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Stocks begin down trend as bonds begin up trend - bigger trade deficit bullish for bonds
Sam Adelton
The bond market is showing signs of a solid upward potential. The stock market has valuation problems as deflation take hold of the economy.
READ MORE>>

Long tern bond futures signaling deflation and 30% drop in yield over next eighteen months
Alan Hershey
The ten-year notes and thirty-year bonds gave a super bullish signal today.
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Inflation from Asia stagnation from America and Europe – the world economies start suffering the after effects of global stagflation
Sam Adelton
The stagflation is the byproduct of supply side trickle down economics and the effects of the same have started hurting the financial markets. Stagflation actually started in 1981.
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Japan showing sign of deflation again –Machine orders fall more-than-expected - the impact can be severe on US and Asian stock markets
Peter Oberois
The stock markets all over the world are closely watching the deflation in the world’s second largest economy. Japanese deflation that started in 1987 is still in full force. The Japanese economy is still extremely export oriented.
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Oil will continue to fall Dow will the downtrend in oil - can Dow crash?
Peter Oberois
The stock especially the dividend paying stocks can act like municipal bonds with little movement on the upside and downside. Analytics point out unless the economy tanks rapidly, stocks may hang in there for a long time.
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Crude oil in steep slide as lack of demand and oversupply embraces the market in absence of geopolitical gyration
Peter Oberois
Crude oil bulls say – in the last twenty years no new reserves were unleashed. Well that is true to some extent; the existing reserves right now are yielding levels never imagined before.
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High demand for Treasury inflation- protected securities (TIPS) shows Fed has lost control over economy and markets – stagflation hits main streets
Alan Hershey
High demand for Treasury inflation- protected securities (TIPS) conforms the stagflation theory. If that is the real underpinning in the economy, the Dow can stay between 11,000 and 13,000 for the next twenty years.
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