Thursday, June 07, 2007

End of Stock Market Rally?

Global stock markets sell off after sharp increase in bond yields as investors finally realize what I've been saying for some time now: that there won't be any Fed rate cuts and that interest rates elsewhere is going up.

And of course, the combination of stock prices increasing much faster than profits and higher interest rates that we've seen implies that stocks have become overvalued. An increasing number of investors now seem to realize it.


Anonymous Anonymous said...

Now it is highly likely that it is time for gold stocks and cash in the right currency.

The right currency is The Swedish Krona (still undervalued with rising interest rates)

The Swedish Guru

9:02 AM  

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