Why Now May Be The Time To Bet Against (Short) The Bond Market. By Gregory Mannarino
The Federal Reserve has made it very clear that they are determined to stick to a monetary tightening cycle, which means rate hikes are coming. This also means there is opportunity for us to short the bond market.
If you follow my work, you also know that I am one heck of an accurate predictor of what the Federal Reserve is a likely to do. As a matter of fact, I have been wrong only one time with regard to predicting when the Federal Reserve would actually raise rates ever since the Federal Reserve began talking about it. Only one time...
It is certainly no secret that the federal reserves unprecedented, never been seen before in the history of finance, interest rate/debt suppression cycle has been successful in re-inflating a housing bubble and a stock market bubble.
The fact that the Federal Reserve has not allowed the market to determine fair value for debt has created distortions across every single asset class.
Personally, all I want to do for myself (and for you), is to put us in a position to capitalize on these distortions.
The unwinding of the federal reserves unprecedented monetary policy is going to have far reaching consequences, and all of these will present us with opportunity.
If I am right with regard to the federal reserves next move, this will present to us with an opportunity to short the bond market.
The Federal Reserve meets next month, June, to discuss monetary policy changes.
In this meeting I expect that the Federal Reserve will be raising rates.
I also believe that the market will interpret the raising of the federal funds rate next month as a signal that more rate hikes are coming, what this also means is we should be looking to bet against the bond market.
One instrument that can be used to short the bond market would be via ticker BND, this is the Vanguard total bond market ETF. You could take a position against the bond market by buying puts on BND.
Now again, I could be wrong with my prediction that the Federal Reserve will announce a rate hike next month however, gauging from my past frankly extremely accurate record of predicting what the Federal Reserve is likely to do, I myself would not bet against my own call here.
Gregory Mannarino
Well so far you've been pretty accurate as to what the Feds are thinking and their next move. I can't say for sure one way or the other as far as them raising rates, as you've said before nothing is real, up is down and down is up, and that steem is making us some crypto! I still believe in getting in on silver at these give away prices...
What I do see is housing being built all around here in Tampa, yet forclosures everywhere if you just look on zillow. I see housing so unaffordable that families lose them, they go to auction, companies come in, buy, renovate and flip or rent it out. More apartments going up everywhere yet it cost just as much to rent as it is to own. If they raise the rates, those who have adjustable rate type mortgage will crumble, less people will be able to keep up with the prices and the housing bubble will have to pop. I see this summer as very interesting when it comes to the crash of 2017. This just cannot go on. Something has to give and it will.
I can see similar issues on the other side of the pond - I'm trying to buy house in Ireland and it's a complete madness here.
The fed will continue what they do, untill they are ready to see this thing fall. Everything resolves around the fed. Lets put an end to it and audit the fed. Then they will no longer have controll. Untill then you will just have to keep guessing when everything will go back to fair market value. Kepp stacking while its being manipulated.
The thing is... When the 'Reset' happens and the chaos begins currency will be useless as there will be nothing to spend it on and crime will be out of control. The question is not so much about how do I make more money but what do I need to do physically to survive it.
You are correct, you should be spending the profits from trading on things you will need. Gold,silver food storage, water filters,guns ,ammo.these are some of the things
When the Paper and Digital Fiat Dollars crash, one of my back up plans is to have Common Coinage that I think will still be used as a Medium of Exchange... Read a few of my Blogs on that topic...
@pocketechange
It's time to buy a troy ounce of physical gold. It'll be my first one. Still grinding to get my freaking signature of approval so that I can finally trade. Will keep you informed about my lion's share ;) see ya tomorrow!
Hello @antgag
Respectfully I suggest purchasing physical Silver with the funds you are thinking to use in buying physical Gold.
Higher Gains in Silver
Either way, your on the right track to financial success my friend.
So very True silver is my choice of metal to
Amen brother!
I am following you and just upvoted you to.
Can you resteem my posts that interest you?
Thanks
Steemit @healthiswealth
Sure Thing will do and thank you for following me .
No worries
post, upvote and resteem that is easy money
Do you participate in @steemit-health free money give aways....
Yes i actually followed them after reading a post :-)
🍁 I just did a new post 🍁
Add a new entry daily to the draw 😜
Agreed ! Silver is a no brainer !
Going to make us rich!
I am following you and just upvoted you to.
Can you resteem my posts that interest you?
Thanks
Steemit @healthiswealth
🍁 I just did a new post 🍁
Add a new entry daily to the draw 😜
Just got mine. But level 1
Thanks a ton Greg for bringing Steemit to my attention off of youtube, I'm very pleased with the experience and will be for the told future, check me out here, friend^^ Of course I followed,voted resteemed!
Please everyone take an adventure.
@larutanton
Everything that I have read has indicated that there will be a rate increase in June. In addition, it seems as though the establishment is prepared to make a move to remove Trump from President. Subsequently, Greg has a very accurate history for calling rate changes and we would all be foolish to bet against him.
I would not be shocked to see Gregory Mannarino become a Steemit millionaire!
Very informative article and thanks for explaining how to short the bond market. Not everyone who wants to do this knows how to.
Greg we love the info you post
The Fed wants to reduce its balance sheet, isnt it a little bit counter productive to keep raising rates if this is their plan? They are the wizards of the economy maybe they will try a new spell.