I bet bernanke has regreted the decision already. he wanted libor down now its going to get worse for a while. look for 'act as needed' mouth pieces in the coming weeks
Bonds are trading as if we are going to be hit by a deadly asteroid next year annihilating all life on earth: People panic and foresee an economic apocalypse and pile into bonds (5y, 10y, 30y etc.) thus driving up the BOND prices and PUSHING DOWN yields (they accept lower yields in exchange for security).
Hope this all backfires in their faces. He made a huge mistake in August and deserves to pay for it. The market should of just ran its course then.
but if an asteroid was going to hit wouldnt u buy as much alcohol, drugs, prostitutes as possible rather than bonds?
This latest leg up was supported by a bunch of air pockets. Retest and consolidate the double bottom, then Santa's coming to town. Good Luck!
That's why I guess consumer staples (booze, condoms, tobacco) stocks are showing relative strength today