Key To The Stock Market

Please click here for a chart of 7-10 year Treasury Bond ETF ().

Note the following:

  • The chart is of ETF  as opposed to a chart of yield because  is the easiest for most investors to watch.
  • Bonds move inverse to interest rates.  In plain English, when interest rates go higher, bonds fall.
  • Our call has been that this stock market is a bubble.
  • The bubble is being inflated with heavy borrowing, money printing and low interest rates artificially enforced by the Fed.
  • We have repeatedly written that the biggest risk to this stock market is if the Fed loses control and interest rates rise.