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  • Benjamin Roth: The Great Depression: A Diary

    Benjamin Roth: The Great Depression: A Diary
    It's all here, times change people don't -the endless govt programs that fail to stimulate the private sector -the ups and downs of the economy, the veterans pension stimulates just as the housing credit did, until of course the money runs out -Roth is a attorney in Youngstown Ohio who kept a diary regarding the economy from 1930 until WW II breaks out, he is objective, candid, and forthright which is more than we get from Washington DC now or then highly recommended

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November 20, 2013

Interest Rates Rise, Stocks Sell Off, Gold Tanks

Posted  Wed Nov 20 2013

The correction to the rise in interest rates ended today. 

TBF

Screen Shot 2013-11-20 at 4.59.51 PM

We recommended TBF a few posts back  which moves with interest rates and opposite bond prices. The release of FED minutes today suggests tapering which  is to say  less bond buying by the FED. We would add to TBF positions here as higher rates are on the way. 

Most analysts are taking higher interest rates as a sign of a  strong economy. Just yesterday one news program was comparing Chicago to Detroit. And Chicago got a debt downgrade this week. We suspect it is a fear of default and a return to a normal yield curve is behind the rise in rates.  

EEP

Screen Shot 2013-11-20 at 5.06.32 PM

We also recommended the pipelines EEP OKS TCP as a way to play the bottoming in oil. EEP was up nicely today as were the others. This looks to be a good alterntive to interest rate sensitive stocks which got hammered today. Utilities and real estate were hit. We have warned that REITs were particularly hard hit in the 1973-74 sell off. 

Crude oil looks to be bottoming while refiners are pulling back from recent gains. The dollar jumped to he upside taking gold and silver down today. 

 

Posted at 06:25 PM in Bonds, Commodities, Currencies |

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