Market Crash Imminent?

Discussion in 'Trading' started by The Kin, Mar 19, 2008.

  1. I was looking at bonds again today. The 1 month is yielding under .26%. Don't believe me, see for yourself?

    Valuation is partly derived from the risk free rate plus risk premium. Well the risk free rate is rapidly getting lower, and actual risk is significantly higher than originally thought as evident with Bear Sterns. Sooner or later something has got to give. Either bond yields begin to increase or the stock market has to come down from these levels.

    Everyday the risk premium is getting bigger and bigger to justify share prices.

    Free markets have a way of correcting themselves. Even if they are artificially being propped up that's only going to last so long.

    Just some thoughts...
  2. You are mistaken.
    There is no such thing as a 1-month treasury bond.

    It always amazes me how most of the people in the Trading Forum on ET that generate these threads about "Market Crash Imminent?" have little understanding of how money and capital markets work, let alone the Fed and monetary policy.
  3. S2007S


    dennis gartman on fast money tonight said he has NEVER seen a market like this, with oil/gold/commodities in general, the overall stock market trading the way they are trading, I hope he knows its 2008 and not 1977. This is a different market then it ever was......
  4. capmac


    Lower rates now !!

  5. capmac


    Anyone buying the dips?
  6. Tempting as a swing trade, but feels soft. Waiting this one out.
  7. Scale in slowly
  8. S2007S


    Im bearish but getting a litttttttttle bullish down here....

    Cant believe I said that.....
  9. capmac is funny with his "cut rtes now" posts

    Kin is dead on wrt markets. Just a matter of time, but the adjustment is in process.

  10. yay another -360 point down day
    #10     Jun 26, 2008