Tag Archives: SPY

Just 32% of Americans have “great deal” or “fair amount” of trust in the media

Media are attacking President Donald Trump, but it seems like people isnt listening anymore. A Gallup poll from September found that just 32% of Americans have «great deal» or «fair amount» of trust in the media, which is the lowest level in the polls history.

Media are in trouble!

What tools do the establishment have if people dont belive media anymore? And what tools do the establishment have if people dont have faith in politicians anymore?

 

(RT: 26 April 2011)

You can see how media are turning things up side down. So are the politicians who have always lied. It was much more easy to lie when there where fewer media outlets. The lies was shaped and tempered by the media.

The most embarrassing lie was during the terror attack on twin towers. Former President Bush said Iraq had weapons of mass destruction, but that was a BIG lie. There were no reason to attack Iraq and people went angry because of that.

The demonstration against the war in Iraq was huge in the United States, but not only that. It is the biggest we have seen in modern history in Europe. Here is what made people pissed: The establishment didn`t listen to the people.

On top of that, people went angry at terrorists for making them feel afraid. The terrorist came as a direct result of the attack in Iraq and the killing of their leader Saddam Hussein. But it didn`t stop here. Next war was underway.

Who wrote about the war in Libya? The Media was silent like never before. We didnt hear much about it, but they bombed Libya and killed Gaddafi. People went even more angry, but it didnt stop here.

Pictures and videos from the killing of ambassador Chris Stevens who was raped and sadomized before murder made people more angry. They went crazy when they heard it took so much time before the support came to the consulate. Fox News sources said CIA in Benghazi during consulate attack denied help. Maybe Mr Stevens could be alive today?

It doesn`t help to know that the United States created al-Qaeda. It is a shame to know that ISIS is also created by the United States.

The point is that the people was against it. So are President Donald Trump. He said Saddam and Gaddafi was a big mistake. Media want us to know that Putin and Russia is dangerous, but how dangerous are they?

In 2011, Putin said: Who gave NATO right to kill Gaddafi? Who gave coalition forces in Libya the right to eliminate Gaddafi? Thats the question Vladimir Putins been asking, during an official visit to Denmark.

The Russian Premier also said NATO`s effectively joined one of the warring sides in the conflict. And more responsible action should be taken instead, Putin said.

What kind of dangerous man is saying things like that?

Take a trip to Africa and ask people about Gaddafi. They saw up to him. Gaddafi was the king of Africa. A big star. Putin didnt join NATO in Libya. He said it isnt right. Its crime, he said. They also killed Gaddafis son. What have he done? People in the West are not proud of this. They are angry.

We can see a clear picture when we know that Edward Snowden is hiding in Russia. He exposed mass surveillance by the NSA (National Security Agency). They spy on ordinary people and this is lack of people`s freedom and liberty. People are not proud of this. They are angry.

President Donald Trump like Putin who is hiding Snowden, and Putin was celebrating Trump`s victory last week.

People are not proud, and therefore, Mr Trump want to Make America great again! Good luck.

 

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High-yield bonds vs the stock market

High-yield bonds became very popular in the 1980`s and is better known as junk bonds, and that is an interesting investment which is widely used for corporate takeovers. It became popular because high-yield bonds outperformed traditional bonds on average.

30 years earlier (1950`s), high-yield bonds were fallen angels. Companies that had issued bonds when they were healthy was falling on hard times, and high-yield investors were buying bonds in turnarounds.

High-yield bonds were financed unproven businesses in the 1980`s, and was issued for speculation, and now those bonds are issued by highly leveraged companies. High-yield bonds on the market today is with a high degree of variety, and they trend with the stock market, but can act like bonds other times.

To show this, I have printed out iShares iBoxx $ High Yield Corporate Bond (HYG) with SPDR S&P 500 (SPY).

Chart

The Yield line is inverted. If yields on corporate bonds rise, then stock prices will fall, and in times when money leaves corporate bonds, it can flight to safety, which sometimes could be Treasuries. That money would also leave stocks. That means stocks can go up in periods of flat or rising yields. The key to this anomaly is risk.

This has happened before. During periods of rising risk appetite among investors. We saw it in 1998, the dot-com boom and during the subprime boom. Two of them were the building of bubbles, but all of them correlated with times when the investors hunger for risk rose.

It happens because money leaves bonds during periods of risk appetite and goes into stocks, which means stocks don`t fall when corporate bonds yields rise. The stock market is booming because investors aren`t afraid to take reasonable risks. The money flows into stocks, not Treasuries. Yields are 50% greater compared to 10-year Treasuries.

HYG is not acting like stocks but it`s not acting like a bond investment either. SPY is moving higher while HYG is declining. It was a correlation before 2011, but after that it all changed. The above should be on every investors mind. Many investors said the rally in junk-rated bonds is in a bubble or close to one, and HYG ETF and the SPX should be in the forefront of Equity Traders minds.

Some say that high-yield isn`t an good opportunity anymore. Watch out for this chart and look out for RS of HYG to SPY for signals of a market top. Look out for HYG outperformance. Weakness in equities is often preceded by a loss of momentum in credit markets. HYG need to stabilize. If not, equities will tumble. The disconnect between stocks and bonds probably means more pain ahead. Will the junk bond bubble burst, or stocks tumble? I`m exited about the end of the trading year. China cut the rate today, and the U.S markets are all up.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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