Let Bonds Lead the Way

16 Jul Posted by in Market Forecasting | Comments Off on Let Bonds Lead the Way
Let Bonds Lead the Way

If nothing else, marked levels of volatility have characterized the financial landscape since the start of 2016. The same volatility has made normally complicated analysis and forecasting more challenging than it normally is. The stock market in particular seems in the last few weeks to be especially schizophrenic, defying various attempts at offering some reliable signs of signaling it’s next major course.

The recent referendum in Great Britain(Brexit), served obviously, as a source of heightened volatility, which has allowed us to identify and profit from some of the larger than normal moves, typical for some of the capital markets. I expect political events later this month in the U.S., along with central bank interaction to provide a substrate of opportunities for financial gains. Not to mention continued aftershocks from Brexit. This heightened opportunity, usually makes the analysis more complex.

So, sometimes when all else fails, in an effort to decipher the financial arena, and in the complementary effort to get a handle on “the Market’s” current state, not to mention locating “good trade” opportunities, an assessment of the bond market, and interest rates in particular, can often present clues which might otherwise go undetected. Applying an “inter-market” analysis, with the bonds (rates) serving as a starting point, may serve as an analytical tack to gain greater clarity in other correlated markets.

Tune in next Saturday, where I will present my recent analysis and projections for bonds, and also indicate the best trade scenarios which I see developing as a result.