Editor: Vladimir Bajic | Tactical Investor
Let’s start off by posting an excerpt of the article that viewers loved the most this week.
The masses made no noise when central bankers started to flood the system with hot money and are still quiet, so why will the banks stop? There are trillions of dollars that the big players will make and still stand to make before this game is over. We are in the race to the bottom and once a race starts you can’t stop it. So expect the negative rate experiment to be continued and this will continue until 90% of savers turn into speculators.
Cathy Berger, a 55-year-old who lives in Nassau County, N.Y., said she used to invest a large portion of her savings in certificates of deposit, earning an annual rate of as much as 8%. Now she has moved a large chunk of it into dividend stocks, but those stocks have been under pressure as of late.
“It’s so volatile,” said Ms Berger. “Trying to reap any kind of income from your money, from your assets, is almost impossible now.” Full Story
Negative rates are already pushing Managers of Pension funds into a tight corner; soon there will be nowhere to go. Pension funds typically invest in bonds, but bonds are paying such miserly rates that you can’t call it investing anymore. You have to call it charity.
At some point these pension funds will be forced to speculate; you will hear casual mention of this at first, then it will be blasted everywhere. When you hear the first whisper of this, take it as a secret signal that the market is going to explode upwards instead of crumbling. Imagine the amount of money these funds will bring to the markets; it will be like 1-2 QE’s combined. Mind Control Techniques & Pensioners forced to Speculate
Merkel, Hollande and Renzi Celebrate After Brexit Blow
Celebrate would be the wrong word as this is what Merkel had to say on the topic of Brexit.
“We take note of the British people’s decision with regret. There is no doubt that this is a blow to Europe and to the European unification process,” she said.
But “what the consequences of this would be… would depend on whether we — the other 27 member states of the EU — prove to be willing and able to not draw quick and simple conclusions from the referendum in Great Britain, which would only further divide Europe,” said Merkel. Yahoo News
Other Articles of Interest