Wall Street and Washington love to spread fables that facilitate feelings of bliss among the investing public.
For example, recall in 2005 when they inculcated to consumers the notion that home prices have never, and will never, fall on a national basis.
We all know how that story turned out.
...........When the Fed stops buying Treasurys, foreign and domestic investors will do so as well. This means for a period of time there won't be anyone left to buy Treasurys unless prices first plunge.
The effects of rising rates will be profound on currencies, equity prices, real estate values and economies across the globe.
It would be wise to prepare your portfolio for a massive interest rate shock in the near future.
—Michael Pento is an economist and president of Pento Portfolio Strategies.
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