Why the growth of European bonds so frightened of US investors?
For the last
three weeks the yield on 10-year-old
German bonds rose more than three
times, with an incredibly low levels.
And this phenomenon sends warning
signals to investors, in particular having
US securities.
"low
interest rates supported the world
stock prices in the period of very slow
macroeconomic growth"- says chief
ConvergEx strategist Nikolay Kolas in circulation
to customers. - "To keep prices
shares or see them during growth
rate increases, you should feel as signs of economic growth
and the growth of corporate profits".
but the main
the problem is that the low profitability
maintain high bond quotes
shares, as drops appeal
maloriskovyh alternative assets.
A yield of US assets
It has grown along with the recent European
time as investors anticipated.
If rates continue to rise,
shares have to show serious
growth. "US stock indexes have
sing a new song, "- says Colas. - "it
may be a more pleasant melodies
low interest rates, or a loud march of a strong and vibrant internal
economic".
There are also
and other concerns. technical analyst
Todd Gordon sees the recent move
returns as a tacit permission
The Federal Reserve to raise
rates - which can be a problem
for stocks.
"Why
Currency jump? why sell
bonds? Why is the dollar weakening? All
This forces the market to think about inflation ...
So I wonder if the Fed will do
his move sooner rather than later"-
said Gordon. - "I think shares
there will be trouble, if in fact
raise rates".
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