Martin D. Weiss, Ph.D.
Monday, June 24, 2013
Mike Larson and I feel it’s time to give you an advance warning of a market crash on the near horizon.
Here’s a quick rundown of our outlook right now for bonds, precious metals and stocks …
Long-term bonds first began plunging this year in Japan. Then, the crash spread to the U.S. and abroad.
And just this past week, it began to accelerate in a big way. In fact, the price of U.S. Treasuries have sunk so rapidly that 5-year notes suffered their worst one-day percentage drop in recorded history, as their yields surged.
Meanwhile, bonds of emerging market countries have plunged across the board. And even the bond market of cash-rich China saw chaos this week.
And today, bonds of every shape and color — including municipal bonds, mortgage bonds, corporate bonds and U.S. government agency bonds — are taking still another beating.
But Mike, who has repeatedly shouted from the rooftops about precisely this scenario, tells us that what we’ve seen so far could be just the opening act in a global drama of historic dimensions.
Reason: Central banks may be forced to wind down what has been the most reckless money-printing-bond-buying scheme of all time.
Moreover, even if central banks continue printing money like crazy, the law of diminishing returns has already begun to strike, says Mike: The more bonds that central banks buy up, the less they get for their money in terms of lowering bond yields.