Pray The Bond Bubble Doesn't Pop

Extracted From The January 19th X-Factor Report There is no doubt that we are in the process of potentially creating one of the largest asset bubbles in history.  While many financial analysts, asset managers and the overly optimistic media will rapidly disagree with that statement – it is important to note that none of the aforementioned experts have ever identified a bubble in advance.  In fact, as we discussed last week , the backdrop of current optimism is far too reminiscent of previous points in history where bubbles were already well into formation. However, the problem with bubbles is that they can last far longer, and rise farther, than most would generally think possible.  Every bubble has been driven by a couple of common factors:  excess liquidity, “a new era” mentality and speculative frenzy.  Each time the bubble is formed it is believed that “this time is ...