Hefaistos

The Case Against Investing in the Dow Industrials (For Now)

Concept for this article is nice... but it is a fundamental error to do this kind of technical analysis of long-term developments based on a linear scale chart. If you redraw the chart with the needed log scale, you will get another picture, other conclusions.

Government Risk Rises: Credit Markets Face Structural Collapse

Excellent article!
I want to add one component. This week there are some big treasury auctions, and there is a worry there won't be enough demand from foreign investors, leading to higher yields. That's easy to understand given the high dollar rate and the low yields, and the prospect for inflation in not too distant future. Is it likely that the Fed steps in in these upcoming treasury auctions to avoid having higher yields? How would such instant monetization be perceived? Or will they act only on the secondary market?