
KEY TO THE STOCK MARKET IS BONDS – BETS AGAINST BONDS RISE
Key To The Stock Market Please click here for a chart of 7-10 year Treasury Bond ETF (IEF). Note the following: The chart is of ETF IEF as opposed to a chart of yield because IEF 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