For years, I have been trying to warn my friends about the economic madness about to engulf us all. Now it’s making headlines in the tightly controlled media. For more than two years, bonds and stocks have been heading in the same direction. Both have been hitting record highs. It’s an each way bet on boom and bust and it’s unheard of.
Something has to give at some stage. Either the global economy will recover, rates will rise and those holding bonds or overpriced real estate will do their shirts. Or stock market investors will wake up one day and discover that central banks have run out of ammunition causing a stampede for the exits.
Either way it won’t be pretty. Read the media release here.
Anyone who has read The Key will understand what is happening.