Bernanke's inflation warning made sentiment indicators perfect for a sustainable explosive rally
Karen Zuba
May 14, 2007

Federal Reserve Chairman Ben S. Bernanke's inflation concerns have prompted investors to make a record bet against short term US Treasuries. The bearishness in the debt market is prevalent; it reminds me of the bond market in 1987 September at the timer of the stock market crash. The new Fed Chairman Allan Greenspan raised short term rates will galloping speed making the debt market as bearish as today. The stock market crashed, Fed lowered rates like never before and the Treasuries rallied nicely. Something similar is cooking behind the scene.

Anytime the sentiment pendulum moves to one side decisively, the next move is in the opposite direction. Bernanke's inflation warning made sentiment indicators perfect for a sustainable explosive rally.

Bernanke's inflation warning made sentiment indicators perfect for a sustainable explosive rally
Karen Zuba
The bearishness in the debt market is prevalent; it reminds me of the bond market in 1987 September at the timer of the stock market crash.
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Investing your Roth IRA in future options can make you retire rich and early
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