Bianco debunks the latest round of conventional nonsense

CNBC’s Rick Santelli talks with James Bianco, Bianco Research, about his take on why he is not buying “conventional wisdom,” on the fiscal cliff, rotation, and the Fed forecast.Here is a direct link.

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2 Responses to Bianco debunks the latest round of conventional nonsense

  1. Attila Balazs says:

    Well folks, perma – bears maybe got it right, but all I know is that money has been coming out of bonds since technical analysis and technical indicators reversed from a buy signal to a sell signal on August 16, and profits are being made in ‘inverse’ bond etf’s that go up in price when the price of bonds go down.
    Technical analysis doesn’t identify where the money that is coming out of bonds is going or who is doing the selling. It also doesn’t know which, if any, of the ‘big picture’ conditions might be causing the sell-off, or if it’s just profit-taking from the overbought condition.
    Nor does it care. All it knows is that money flow and momentum ran out of steam and reversed to a degree sufficient to trigger a sell signal. Which means someone began selling so heavily that it even offset the significant buying of the Fed’s QE programs, and continues to do so.
    When will it end? The flip answer would be when we get the next buy signal.

  2. Scott says:

    All securities must be held by someone until they are retired be it bonds, stocks, cash, etc. There is always a buyer and a seller so money doesn’t truly flow from one asset class to another. Sorry.

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