Collapsing factory orders manifest stagnation in economy fast deterirarting to recession – what is the effect o n bonds and stocks?
Alan Hershey
Jul. 2, 2007

The factory orders number really shocked the financial world. This is another indictaion that the economy is stagnating and possibly headed right into deep recession. It is a concern now that business investment may not rebound as much as some forecast. That is bearish for the stock But is bond market better off in the long run?

The bond market is concerned about inflation coupled with recession. The bonds yields for the longer side of the yield curve can rise sharply and then fall equally fast as recession changes to depression and inflation changes to deflation.

For now, the stocks and bonds both can rally while the real sell off can be in dollar index because the market now expects a fast rate cut.

Collapsing factory orders manifest stagnation in economy fast deterirarting to recession – what is the effect o n bonds and stocks?
Alan Hershey
The factory orders number really shocked the financial world. This is another indictaion that the economy is stagnating and possibly headed right into deep recession.
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Mortgage defaults, forelosures and falling real estate creating a financial fireball that can create bank failures and meltdown of the financial system
Fred Day
It will take the stock market, the corporate cond market and the real estate market with it. The huge Federal budget deficit and trade deficit and almost defunct Social Security Funds will not allow the Fed to resue this time.
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The stagflation making gold ready for a solid bull run along with oil – should you sell the bonds
Joe Weinman
Analytics, fundamentals and technical charts point to increase in longer end of yield spectrum and lower shortterm rates. That means you should sell your bonds two year or more left in matuirity and but short term notes and bill.
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Oil, sugar and cooca and cotton options spread can make your Roth and traditiona IRA returns exceed 100% a year
Peter Oberois
Crude oil, sugar, coacoa and cotton futures are in raging bull makets. The deep in the money call spreads or an arbitarge position of long the future and way out of money put and short a deep in the money call option can provide handosme profit.
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Oil and big corporation money funding Hillary – Obama relies on common middle class- the war is here between rich and middle class in America
Sonia Joshi
This time Hillary is their choice. She will provide the left wing version of the continuity from George Bush. Under Hillary Clinton the status quo of the big money will be intact as it did under Bill Clinton and George Bush.
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The bubble in private equity buyouts is right here – the $48.5 billion buyout deal Canadian telecommunications operator BCE shows it all
Pamela Jones
What will make BCE really profitable after the deal? When you do not find the answer, you know the bubble is here. It is just a question of time when the bubble bursts.
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Growing household income providing solid business confidence in Japan – time to buy Yen as Bank of Japan closes on rate hike
Nancy Sensua
It is time to go long on Yen. The Yen is in a long-term bull market. It can test 116 very fast against dollar. Over the long term Yen can go as low as 60 against the dollar.
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Sentiment indicators express first alarm for the stock market – the long-term top is in place
Peter Oberois
The economic environment now is similar to 1972 through 1982. Stagflation crippled the economy. The Dow at that time basically stayed around 1000 and the inflation was high.
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