Falling bonds and rising yields are creating a situation in global markets where capital is moving away from technology, communications services and discretionary stocks, suddenly out of favor, and financial, energy, real estate, and metals/miners. gaining strength. The increase in yield presents an opportunity for banks and lenders to profit from increased yield rates. Moreover, historically low interest rates have pushed the real estate sector, including commodities, to new highs.
We also note that miners and metals have recently shown strong support as the US dollar and bonds continue to decline. The way the markets are shifting right now is suggesting that we may be nearing a technology peak similar to the Dot com peak, where capital has recently moved from high-flying technology firms to other sectors (e.g. banks, financials, real estate, etc.) estate). and energy).
The deep dive into bonds and the US dollar is in line with research we conducted in late 2020, which suggested a market peak could be setting in late February. We also suggested that the markets may continue to trade in a sideways (circular top) type structure until the end of March or early April 2021. Our tools and research help us make these predictions approximately 4 to 5+ months ahead of market attempt. Lets go….You can read this research here.
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