The great bull market that started in 1982 with the Dow at 776 possessed one great advantage — It had a bull market in Treasury bonds behind it. At the time (in 1982) the yield on long T bonds was around 15%. The bond market and the stock market rose together until the 2000s. The stock market hit its bull market high on October 7, 2007 at 14,164.53 on the Dow. The bond market hit its bull market peak in May of 2013.
Now the great bond bull market has topped out, and a new bear market in bonds is underway. This will mean rising interest rates for as far as the eye can see, with accompanying interest rate pressure on stocks.
Question — Russell, you stuck your neck out last week and stated that the stock market may be in major trouble. How come?
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