On January 1st, 2014 I started heavy buying of a 10-Year Treasury Note. With most people at the time thinking I was on a crack cocaine binge, thus far, the bet has paid off handsomely.
More importantly, the 10-Year Note broke a significant support level today at around 2.55%. I continue to maintain that the 10-Year Note is one of the better investments over the next few years or until downside targets are achieved. Here is why….
Generally speaking, the BOND Market is more intelligent. Yields breaking down is indicative of what the bond market sees. What does it see? A significant recession and a possible bear market. That view is very much in line with our overall forecast and our mathematical/timing work predicting a severe bear market/recession within the US Economy between 2014-2017.
In addition, 30-Year bear markets in Bond Yields DO NOT end in a V shape fashion. Typically there is a double or tripple bottom. Finally, there is a number of large gaps in the 10-Year treasury, suggesting that the bond market will retest it’s 2012 and 2013 yield lows. Possibly taking the market as low as 1.5-1.6% in yield.
Impossible? On the contrary and that’s exactly what my extremely accurate mathematical work shows.
As the saying goes, money talks and bullshit walks. Well, the money in the Treasury Market is talking. The only question is…… Are You Listening?
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