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How to Protect your Wealth by Investing in AI Tech Stocks

Stocks and 10 Year Bond Yields

Stock-Markets / Stock Market 2021 Nov 10, 2021 - 02:56 PM GMT

By: Nadeem_Walayat

Stock-Markets

The basic pattern is for falling yields to be bearish for stocks whilst rising yields are bullish for stocks. The reason being is that investors are selling bonds to buy stocks hence yields and stocks rise.


The chart shows this pattern play out up until May 2021, where initial pattern conforming to Dow 33.3k soon reversed as stocks launched into a mania phase WITH falling bond yields. However now we have the opposite problem of rising yields and weakening stocks.

What this suggests to me is that recent rise in yields is temporary, and thus despite talk of tapering and run away inflation, yields could be heading lower. Though with yields trading well below inflation we are not living in normal times, i.e. yields 'should' be ABOVE inflation i.e. well ABOVE 5%!

Also that we are pretty close to the limit below which yields cannot go, as illustrates by the period April 2020 to August 2020 i.e. stocks rose with falling yields because 10 year note yields can't get much lower than that.

So falling yields 'should' pull stocks lower to a degree, which would fit the time line for a correction of a 4 - 6 weeks before stocks just shrug their shoulders and continued on higher.

This article was an excerpt from my recent extensive analysis on the prospects for the stock market into Mid 2022 see - Stock Market FOMO Hits September Brick Wall - Dow Trend Forecast Sept 2021 to May 2022

Contents:

  • Stock Market Forecast 2021 Review
  • Stock Market AI mega-trend Big Picture
  • US Economy and Stock Market Addicted to Deficit Spending
  • US Economy Has Been in an Economic Depression Since 2008
  • Inflation and the Crazy Crypto Markets
  • Inflation Consequences for the Stock Market
  • FED Balance Sheet
  • Weakening Stock Market Breadth
  • Why Most Stocks May Go Nowhere for the Next 10 Years!
  • FANG Stocks
  • Margin Debt
  • Dow Short-term Trend Analysis
  • Dow Annual Percent Change
  • Dow Long-term Trend Analysis
  • ELLIOTT WAVES Analysis
  • Stocks and 10 Year Bond Yields
  • SEASONAL ANALYSIS
  • Short-term Seasonal Trend
  • US Presidential Cycle 
  • Best Time of Year to Invest in Stocks
  • 2021 - 2022 Seasonal Investing Pattern
  • Formulating a Stock Market Trend Forecast
  • Dow Stock Market Trend Forecast Sept 2021 to May 2022 Conclusion
  • Investing fundamentals
  • IBM Continuing to Revolutionise Computing
  • AI Stocks Portfolio Current State
  • My Late October Stocks Buying Plan
  • HIGH RISK STOCKS - Invest and Forget!
  • Afghanistan The Next Chinese Province, Australia Living on Borrowed Time
  • CHINA! CHINA! CHINA!
  • Evergrande China's Lehman's Moment
  • Aukus Ruckus

So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat.

Including access to my most recent extensive analysis updating AI stocks buying levels as we head into the year end stock market rally .

AI Tech Stocks Portfolio Updated Buying Levels and Zones as Financial Crisis 2.0 Continues Brewing

Contents:
Financial Crisis 2.0 Checklist
The China Syndrome
Stock Market Begins it's Year End Seasonal Santa Rally
Stock Market Trend Forecast Current State
INVESTING LESSON - BUYING VALUE
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock
INVESTING LESSON - Give your Portfolio Some Breathing Space
How Stagflation Effects Stocks
INTEL Bargain - 15.5% Discount Sale
Why Intel stock price dropped 15%?
FACEBOOK - 10% DIscount
IBM - 20% Discount
Amazon - 5% Discount
APPLE 4% Discount
AMD $136 on Route to $200
TSMC - $117
Microsoft $336
Google $2980, PE 28.7, EC 30.
Nvidia Leaves planet Earth - $299, PE of 106
Heads Up on NEW Potential Tech Stocks
AI Stocks Portfolio Updated Buying Levels
AI Stocks Buying Plan B
FREE TRADE the Perfect Stocks and Shares ISA?
FREE SHARE FROM FREETRADE
High Risk Stocks Brief
Crypto's 20% Discount Event
Bitcoin Trend
Palladium Brief

And my latest analysis Silver Price Trend Forecast October 2021 to May 2022, CHINOBLE! AI Stocks Buying Plan

  • UK Inflation Soaring into the Stratosphere, Real rate Probably 20% Per Annum
  • The 2% Inflation SCAM, Millions of Workers take the Red Pill
  • Silver Previous Forecast Recap
  • Gold Price Trend Implications for Silver
  • Silver Supply and Demand
  • Silver vs US Dollar
  • Gold / Silver Ratio
  • SILVER Trend Analysis
  • Long-term Trend Analysis
  • Formulating a Trend Forecast
  • Silver Price Trend Forecast October 2021 to May 2022
  • Silver Investing Strategy
  • SIL ETF - What About Silver Mining Stocks?
  • Gold Price Trend Brief
  • Why the CCP is Living on Borrowed Time and Needs a War
  • Understanding the Chinese Regime and What it is Capable Of
  • Guanxi
  • Chinese People do NOT Eat Dogs Newspeak
  • CHINOBLE! Evergrande Reality Exposes China Fiction!
  • AI Stocks Portfolio Investing Strategy
  • AI Stocks Portfolio Amendments
  • AI Stocks Portfolio Current State
  • October Investing Plan
  • HIGH RISK STOCKS INVEST AND FORGET PORTFOLIO
  • Why China Could Crash Bitcoin / Crypto's!
  • My Next Analysis

My analysis schedule includes:

  • Silver Price Trend Analysis, AI Stocks Portfolio Update - Complete
  • Warning Crypto Markets Are About to Explode Higher!
  • How to Get Rich! - 90% done - This is a good 6 month work in progress nearing completion.

  • UK House Prices Trend Analysis, including an update for the US and a quick look at Canada - 15% done
  • US Dollar and British Pound analysis
  • Gold Price Trend Analysis - 10%

Again for immediate access to all my work do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat.

And ensure you are subscribed to my ALWAYS FREE newsletter for my next in-depth analysis.

Your AI data preprocessing analyst.

Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2021 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 35 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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