Why are equities and bonds declining simultaneously?

Discussion in 'Trading' started by bond_trad3r, Jun 20, 2013.

  1. 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.
     
  2. 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.
     
  3. Tsing Tao

    Tsing Tao

    LOL! I love this forum.

    Were you posting about why bonds and stocks were going up at the same time for the last couple of years?
     
  4. Stocks, bonds, gold, they're all dying. Everything is overvalued.
     
  5. edible gold son, or in the shape of something insertable.
     
  6. No because the answer was obvious: QE.
     
  7. 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.
     
  8. jem

    jem


    I believe it is better to end it now then later.

    what are their choices... now... or right in front of hillarys vs _______ election?
     
  9. 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.
     
  10. Agreed, let QE end now. I know it will be painful, but it’s better to stop artificially propping up the markets sooner rather than later.
     
    #10     Jun 26, 2013