Bonds Are Still Crashing

JC Parets
May 29, 2024

This historic bond market crash continues.

And to be fair, it might not seem like a "Crash" because bond market volatility is still relatively low.

So it's just been a slow painful grind lower.

But there's no evidence that it's over.

You can see the Japanese Yen continuing lower as well....

So what are the implications?

Well, think about it.

Falling bonds = Rising Interest Rates.

Falling Yen = Stronger Dollar.

Higher Rates & Dollar = Headwind for stocks.

We've seen it for most of this year.

Yes, the Nasdaq Composite closed at a new all-time high yesterday.

But of the 4000+ stocks on the Nasdaq, only 140 of them were actually able to make a new high.

Here's a better a look at what most stocks look like:

Look here below at the "Median Stock" as represented by the Value Line Geometric Index.

It's at the same levels it was at the end of December.

The median stock has made no progress at all this year while the bond market has been crashing.

Sure there have been some big winners, huge winners in fact.

And I believe there are more opportunities from the long side today than we've seen since last October.

But we have to be selective.

This is NOT a "buy everything" market.

There's no evidence that it is.

We're picking our spots, and we're seeing opportunities in Energy names that have been showing relative strength.

Look at the NYSE Oil Index pushing up against new all-time highs:

This Index above is from the NYSE, so it includes foreign companies that trade in the U.S. vs just looking at U.S. Energy Indexes being dominated by Exxon and Chevron.

Look at Canada's Imperial Oil, for example, breaking out of this huge base to new all-time highs:

The potential here is tremendous.

While not many stocks in the U.S. are making new highs, there are plenty of areas around the world that are leading the way higher.

We discussed this all last week in Sonoma for our Portfolio Accelerator meetings.

The trade ideas, the videos of the discussions, and all the charts used throughout each day are available NOW.

If you missed it, you can still catch up on everything we discussed, including yesterday's LIVE Weekly Meeting.

There are ideas and strategies discussed in these meetings that you can't access anywhere else.

If this is something you're interested in, make sure to contact Mary and fill out your application right away.

We're getting together again in Chicago in a couple months. We'd love for you to join us! But we also meet once a week to discuss everything that's on our minds, come up with new trades and discuss ongoing strategies.

But it's the new ideas to put to work in the market that makes it all worth it.

We have a new Gold trade, a new Energy trade and the best Election Trade I've heard all year.

Apply today and I'll see you in there!

JC

 

 

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