2021-06-02

10yr 2yr Ratio

I talked about this chart in early April. We're back at levels seen in 2011, right before markets took a nose dive. We're here for the same reason too: central banks and governments combined for a massive liquidity binge. The difference is China didn't participate with stimulus this time and it only took 1 year instead of 2 years to reach this point. Is this time different or is everyone about to become extremely disappointed? For mysdelf, I like being long gold/miners and short technology here because it's a potential winner if this is the biggest bear market rally in history and it's also a winner if there's a regime change to much higher inflation.

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