Currently the U.S., Britain and Europe are asking about one per
cent for loans. The sovereign debts increase enormously year by year. There is
no stop insight for either of these habits. The SP500 has moved from 100, 1982
to 1.500, 2000. A drop to 800, 2002 and a new top at 1.500 2007 and a drop to
800, 2009. From here a top 2011 or 2012 at 1.300 – 1.500. The big technical
picture shows that there are five waves on upside 1900 – 2001. This third top
in 2012 seems to be the final top before the big drop that will take the
indexes down to the fourth wave at 100 within a few years. Yields on 10 year
notes have fallen from 16 % to 2% during 30 years. These yields are at the very
bottom and from here we will start to move up again within months with the long
term target of 16%. Bond yields and SP500 followed each other 1962 – 1985. Then
yields fell and SP500 rose to 1.500. After the top that will come 2012 the
index will fall and rates go up until the curves meet again.
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