The Summer Surprise Of 2012, Or The Great Realization
By Michael A. Gayed:
"All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident." - Arthur Schopenhauer
Following the Summer Crash of 2011, Fall Melt-Up, Winter Resolution, and Spring Switch series of writings I have put out since last year, it is now time for my next major "call" on markets. I do think the "Spring Switch" out of bonds and into stocks was finally flipped in early June given the panic bond yields were signaling then. Bond prices spiked in a way not seen since after Lehman, while stocks continue to yield more than 10 year Treasuries (IEF). Many companies are in fact raising dividends, which is at complete odds with the negative narrative and feeling that we are in the midst of another 2008 repeat.Stocks have continued to act resiliently, and I believe reflation expectations are likely to getComplete Story »
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