Shah on Varney: Why Negative Yielding Bonds Are Worth Your Time

0 | By Wall Street Insights and Indictments Staff

Just yesterday I shared on Varney some of the implications of interest rates dropping throughout the world. The primary short-term effect is that the dollar will gain strength, which is problematic for international companies who make profits from overseas and explains why we are seeing the problem now in this earnings cycle. But there’s much more going on, so click here to watch and then read on to what I couldn’t share on tv.

The only reason that trillions, and yes I mean trillions, are going into bonds throughout the world is because central banks can make more money. No one would ever buy a negative yield like bonds, it just doesn’t make sense. So it’s not professional traders or every day investors that are buying these trillions of bonds. It’s the big institutional banks. The institutions buying a negative yield are not looking for a return off the bonds themselves. Instead, the more they buy will drive yields down making everyone afraid. It’s the fear they want to think that the growth is lower than it really is. This will lead to even better profits for the big institutions as they can buy the bonds now, and then sell them later when everyone else jumps in to protect themselves from the apparent “slowing growth”

I’m the only one willing to call out what’s really happening here. Really we’re getting in a situation that could quickly spin out of control, and spell disaster for the long-term future of the world markets, which is why I’m sharing with you how I plan to clean house and double down on dog stocks. I’ll give you a chance to look at my track record, as I have nothing to hide unlike the institutional banks manipulating markets far too often. When markets plunge next, here’s how you could get rich quickly with my assistance along the way.

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