Bert Dohmen Cautions the Rout in the Treasury Markets is Far From Over

  1. Rising inflation expectations because of a very loose and accommodative monetary policy. That is bullish for stocks, as they become inflation hedges. Companies can hike prices of their products and services faster than inflation, which increases profits.
  2. Tight money causes spikes in rates because of a scramble for liquidity. Lenders can take advantage and charge much higher rates when money is hard to get. That encourages the selling of stocks for cash, causing them to tumble.

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Dohmen Capital

Dohmen Capital

#1 Ranked Investment Newsletter. Investment Advice. Making Money in Bull and Bear Markets. http://www.DohmenCapital.com