Tom Scollon


Take a look at my Futures Quote list in Profitsource:

Light Crude (CL-Spotv:NYMX) Weekly Line Chart


Click to Enlarge

DAX (DAX-Spotv:EUREX) Weekly Line Chart


Click to Enlarge




DJ China Broad Market (DJCHINA:CBOT) Weekly Line Chart


Click to Enlarge


Dow Jones (EYM-Spotv:CBOT) Weekly Line Chart


Click to Enlarge




Nikkei (NK-Spotv:CBOT) Weekly Line Chart


Click to Enlarge

There are some heavy hitting indices there – all saying the same thing.

It is like they drift down the Amazon, watching. There is a sort of calm for now but beneath the calm who knows what lies in waiting.

The answer maybe in bonds. They have been strongly trending higher and will continue to do so in the months ahead albeit with a pause along the way:


US T Bonds (US-Spotv:CBOT) Weekly Line Chart


Click to Enlarge

 

US Ten Year Bonds (ZN-Spotv:CBOT) Weekly Line Chart


Click to Enlarge

 

ASX Ten Year Bonds (ANX-Spotv:SFE) Weekly Line Chart


Click to Enlarge

So, as bonds climb higher so will interest rates drift lower. In other words, interest rates could actually go to zero and in fact below and in the latter case you could have to pay the bank money to hold your cash.

So, such assets as shares offer as an attractive haven even though risks will grow as so much money will be looking for a panic exit when share markets become over bought. I guess most say they will worry about that then.

A new experience for most of us


Enjoy the ride

Tom Scollon