Celente – Here Is The Wildcard That Will Unleach Panic In The Markets

Thursday, April 26, 2018
By Paul Martin

April 26, 2018

The top trends forecaster in the world, Gerald Celente, says this is the wildcard that will unleach panic in the markets.

Is The End Near?
April 26 (King World News) – Gerald Celente: “In this, the season of equity market volatility that began in early February, a key trigger sending stocks reeling is the prospect of interest rates rising faster than anticipated.

This week’s trading started off on a down trend in the U.S. with growing fears that interest rates would rise four times this year, instead of the anticipated three increases, putting further pressure on the overvalued and overleveraged markets…

Also this week, high anxiety swept over the Street as 10-year Treasury notes hit the 3-percent mark for the first time since 2014. Not only will Treasury yields impact rates on the $26 trillion of outstanding US corporate, municipal and mortgage debt, but as rates rise and the cost of borrowing increases, corporations are expected to slow down stock buybacks.

Moreover, should 10-year yields climb above 3.5 percent, expectations are that the higher yields rise, bonds will become more attractive than investing in stocks.

Can markets endure an aggressive schedule of interest rate hikes and higher bond yields?

Our forecast: Short term, yes; long term, no.

The Rest…HERE

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