“It’s Going to Get Really, Really Ugly”
Justin Spittler
CaseyResearch.com
January 31, 2017
“If you don’t prepare now, you’re going to get hurt.”
If this warning sounds familiar, it’s because it appeared in yesterday’s Dispatch. It’s a direct quote from Casey Research founder Doug Casey.
As you may know, Doug thinks politicians have set us up for a huge disaster.
He says their “stupid government economic policies” have completely warped the global financial system. There are now huge bubbles in stocks, bonds, real estate… you name it.
Sooner or later, these distortions will come undone. Doug says this will trigger a financial crisis far worse than what we saw in 2008. It will usher in the “Greater Depression.”
According to Doug, this crisis may already be underway…
• The bond market is unraveling…
The bond market is where companies borrow money. It’s about twice as large as the stock market.
Many investors consider bonds safe. After all, bondholders are first in line if a company gets into trouble. The law says that they get paid before shareholders.
Bonds have also been in a bull market since the 1980s. Investors are used to them going straight up. But that looks like it’s coming to an end.
• Bond yields have skyrocketed over the last few months…
The U.S. Treasury market is a perfect example.
Last July, the U.S. 10-year Treasury bond yield hit an all-time low of 1.37%. Today, U.S. 10-years yield around 2.5%.
In just six months, the 10-year yield has nearly doubled. That’s an enormous move for such a short period, and a serious warning sign.
You see, a bond’s yield rises when its price falls. In this case, yields spiked because Treasury bond prices nosedived.
• The world’s top bond experts say this is only the beginning…
A few weeks ago, Bill Gross and Jeffrey Gundlach—Wall Street’s “Bond Kings”—both said bonds are entering a long-term bear market.
Most investors aren’t ready for this.
Remember, bonds have been in a bull market for almost four decades. According to Doug, the bond market is now “the biggest financial bubble in world history.” And we all know how bubbles end.
But bonds aren’t the only asset investors should be nervous about.
• Practically everything is in a bubble these days…
The Rest…HERE
