No coyotes. LOL
NO CHIT, start pumping into stocks?????????? OPEN your eyes dude............... Markets suck right now,,,,,,,,right?????????????? duhhhhhhhhhhhhhh
Opinions vs. Errors
I strongly disagree with Mnuchin on valuations. But he is entitled to his own opinion, no matter how silly it seems.
His opinion is not the problem. His comments prove he is clueless how markets even work.
Mathematical Impossibility
It is mathematically impossible for investors, in aggregate, to "rebalance out of bonds into equities."
The explanation is easy. For every buyer of a stock or bond there is a seller. For every seller there is a buyer.
Someone much hold every stock or bond issued, 100% of the time.
Individual investors may take action, but rebalancing cannot and will not occur in aggregate because it is mathematically impossible.
Repricing
Don't expect rebalancing (because it's impossible). Instead, expect repricing.
Equities are not cheap. Expect them to get hammered and junk bonds right along with them.
Buy gold, that's what's cheap (obviously my opinion).
Mike "Mish" Shedlock
http://moneymaven.io/mishtalk/economics/treasury-secretary-mnuchin-is-totally-clueless-about-how-markets-function--qk2D694HkamTb2SqR9yrQ/
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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