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High Base Breakout, But Hold Your Horses 11/29/23


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Posted
7 minutes ago, fxfox said:

… which investors would buy all the debt if rates would go down? 

It's the opposite. If investors are big buyers price rises and yield falls. But if they're not, and government's keep printing, then prices will keep falling and yields rising. 

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Posted
24 minutes ago, DrStool said:

It's the opposite. If investors are big buyers price rises and yield falls. But if they're not, and government's keep printing, then prices will keep falling and yields rising. 

Hm yes.

So there are only 2 possible scenarios:

1. The FED and ECB buy the debt

2. Governments reduce spending

Since 2 is not very realistic, I vote for 1 😂

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