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Thursday, March 28, 2024

Are You Prepared For Another 2008? Pt 4

Courtesy of Phoenix Capital Research

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So why is Bill Gross, the Bond King, dumping US Treasuries?

This is the 28-year weekly chart of the 30-year Treasury’s performance. As you can see, we are about to break the trendline that has supported Treasuries for more than 20 years.

In fact, by some metrics, we already have.

Bill King whose research I respect recently noted that the yield on long-term Treasuries has already broken above its 84-month (7 year) moving average:

This is the first time this has happened in 20 years. In fact, the picture is even uglier when you perform a close-up of the above chart: it’s clear that the yield has not only broken above its 84-month average, but that it has fallen to re-test this level and BOUNCED, indicating that the 84-month average is now SUPPORT instead of RESISTANCE.

In simple terms, higher interest rates are coming very soon. I’ve stated before that I do not believe there will be a QE 3 and that it’s very possible QE 2 will not reach completion in June 2011. If things get much uglier on the long end of the Treasury curve it’s highly likely both predictions will come true even faster than I expected.

As you can see, the 30-Year Treasury only has one support line left before it gets to the line that has supported it throughout its bull market of the last 28 years. When we take out that line, the US Debt Crisis will hit in full force, as our overleveraged financial system breaks down once again.

On that note, if you’re getting worried about the future of the stock market and have yet to take steps to prepare for the Second Round of the Financial Crisis… I highly suggest you download my FREE Special Report specifying exactly how to prepare for what’s to come.

I call it The Financial Crisis “Round Two” Survival Kit. And its 17 pages contain a wealth of information about portfolio protection, which investments to own and how to take out Catastrophe Insurance on the stock market (this “insurance” paid out triple digit gains in the Autumn of 2008).

Again, this is all 100% FREE. To pick up your copy today, got to http://www.gainspainscapital.com and click on FREE REPORTS.

Prepare Now!

Graham Summers

PS. We ALSO publish a FREE Special Report on Inflation detailing three investments that have all already SOARED as a result of the Fed’s monetary policy.

You can access this Report at the link above.

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