Well as I suggested in Friday's offering, bond markets lead other financial markets and record low yields are likely not a harbinger of higher interest rates (as uncertainty drives investors to safer assets such as government bonds, pushing their prices up and their yields down):
Equity market traders caught on to that signal finally, and as we had predicted, volatility spiked:
As uncertainty over the June 23 UK referendum to determine whether to stay in or depart the European Union builds (polls now show the "leave" camp with a slight edge), we can expect volatility to continue to build.
This will not sit well with investors who have too much risk in their portfolios (in many cases, over-priced risk).
At High Rock we invest in the exact same models (and securities) as our clients. Want to hear more about our thoughts on our strategy?
Today is webinar Tuesday at High Rock, where we will discuss what is going on in the global economy, in financial markets, including our views on the preferred share market and anything eles that we feel is important in the management of our and our clients' wealth.
We will post the recorded version on our website at http://www.highrockcapital.ca/current-edition-of-the-weekly-webinar.html at or about 5pm EDT.
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