The Bond Market Calls Draghi's Bluff. What's Next?
ECB President Mario Draghi is now walking back QE.
This is not a surprise to our readers. I’ve been forecasting this exact development, (as well as the Euro's spike to 120) since August 2016 (by the way, the Euro was at 109 back then everyone thought it would soon reach parity with the $USD as it collapsed).
Still, why is Draghi doing this?
Because the bond market was in revolt, with yields beginning to rise. Rising yields= falling bonds prices. Falling bond prices over time= bear market in bonds. Bear market in bonds = SYSTEMIC reset.
We explain all of this in our bestselling book The Everything Bubble: The End Game For Central Bank Policy. If you’ve yet to pick up a copy, grab one now. You’ll immediately know more about how the financial system works (as well as what’s come) than anyone else in your social circle.
The bottomline is as follows...
Draghi, like all Central Bankers, cares about just one thing. Bond yields. And as the below chart shows, bonds particularly German Bunds (don't forget Germany is who controls the real purse strings in Europe) were in revolt, rising above their long-term trendline.
Put simply, the above chart was a MAJOR warning that the bond bubble was in serious trouble. The ECB, like all Central Banks is now cornered: either it stops printing money and let stocks collapse... or they continue to print money, unleash inflation, and pop the bond bubble.
Either way, we're heading towards another crisis.
The time to prepare your portfolio for this is NOW before this truly gets out of control!
Imagine if you'd prepared your portfolio for a collapse in Tech Stocks in 2000... or a collapse in banks in 2008? Imagine just how much money you could have made with the right investments.
THAT's the kind of potential we have today.
On that note, we just published a Special Investment Report concerning FIVE secret investments you can use to make inflation pay you as it rips through the financial system in the months ahead.
The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU.
We are making just 100 copies available to the public.
To pick up yours, swing by:
https://www.phoenixcapitalmarketing.com/inflationstorm.html
Graham Summers
Chief Market Strategist
Phoenix Capital Research