Old rules of finance, during sharp equity declines, bonds rally. WTF is this shite that we're seeing this week. 10 year creeping up on 2.5% as markets crash.
Why are equities and bonds declining simultaneously?
- Thread starter bond_trad3r
- Start date
If you look at it in the longer-term, equities, bonds, PMs, real estate, etc. all went up since things bottomed out in 2008-9 and ZIRP/QE started. If/when the Fed does taper off their activities, they'll stop buying bonds (hurting the bond market) and other assets will no longer have the Bernanke put either. That's what's being priced in right now.
Stocks, bonds, gold, they're all dying. Everything is overvalued.
No because the answer was obvious: QE.
You just answered your own question buddy. QE = stocks and bonds go up, no QE = stocks and bonds go down. The current fear is QE will end.
obviously cash is KING, at least temporarily. The players are waiting for rates to rise and then will roll into bonds at least short term from the stocks.
Agreed, let QE end now. I know it will be painful, but itâs better to stop artificially propping up the markets sooner rather than later.