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Market Behavioral Analysis:

It is understandable that investors flee the Bonds of troubled Sovereigns. This flight to “safety” explains the real negative returns this parked money experiences in the relatively “safe havens” of German Bunds and US Treasuries. However, in the case of the US it is just a matter of how close to the edge of the cliff we are relative to the PIIGS and in the case of Germany it is undertaking their broke cousins obligations, how are these havens safe? The Debt Train is headed off the cliff and instead of getting off the train investors just moving to cars at the rear doesn’t make them safer.

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