MARKET ALERT: Huge Panic Sale German Bunds Spooking Investors

Bund yields rise above 0.30 percent as sell-off continues

(Reuters) - German benchmark Bund yields rose above 0.30 percent on Thursday after their biggest jump in two years the previous day, as poor market liquidity exacerbated the impact of easing deflation fears and improving economic data in the euro zone.

Data showed on Wednesday that German annual inflation accelerated faster than forecast in April, crucially remaining above zero for the second month running, while private lending in the euro zone rose for the first time in three years in March.

That was a first sign that the European Central Bank's trillion euro asset-buying programme may already be having an impact on the economy and caught most investors unawares as they were positioned for further falls in bond yields. Read More.

Previous Warnings Go UnHeeded? 

INVESTORS' INSIGHTS  - "Today's Edge" 

#1 Investing Rule - watch the the Bonds, because when the bond market crashes it will bring upon the unprecedented collapse in stock markets, real estate and other asset values ever witnessed by our species. And, it is governed by mathematical absolutes - enough said.

International Offices
May 1, 2015

INVESTORS BEWARE - Too Good, For Too Long

Investment Environment Very Strong

HONEST INVESTMENT WISDOM:
 What Reality Is All About

After all, global equity markets have made stellar gains since the first quarter of 2009 despite enormous uncertainty and difficulties in the global economy and the global financial system over that period.My caution was misplaced last year and so far this year it appears to have little justification. Markets are still simply surging ahead.

So far this year the US S&P 500 has gained 14.5% in euro terms; the FTSE 100 has gained 16.3%; the German DAX has gained 22.6%; the Nikkei is up 29.8%; the French CAC is up 22.2% and even the Iseq has gained almost 21%.

Indeed since the first quarter of 2009 — just six years ago — the US S&P 500 has gained 210%; the FTSE 100 has gained 101%; the German DAX has gained 228%; the Nikkei is up 185%; the French CAC is up 107%, and the Iseq has gained 229%.  Read More.

The Optimism Or Stupid Bias  - Our Hard-Wired Brains Survival State

Watch THIS  Too

https://youtu.be/B8rmi95pYL0

GOOD NEWS: FBI Targets Market Flash Front Runners

Heroes In Action

FBI investigating high-speed trading outfits


U.S. federal agents are investigating whether high-speed trading companies violate U.S. laws by using fast-moving market information not available to other traders, a FBI spokesman confirmed on Monday. 

The Silent Firm -Flash Partners

Launched by the Federal Bureau of Investigation about a year ago, the investigation called the High-Speed Trading Initiative, is still in its primary stages, a senior FBI official and an agency spokesman told The Wall Street Journal, which first reported the story.

The spokesman who spoke to the Journal said high-speed trading based on information about orders that other investors do not have access to and hence putting them at a disadvantage could violate insider-trading laws. 

Why it's time for a public hearing on the stock market

Separately, an FBI spokesman, who did not want to be identified by name, told Reuters the agency was probing high-frequency traders front-running others' trades by getting to exchanges first, among other areas. 

Never Ends?

The spokesman said a big trade, such as bank shorting a million shares of a company under investigation, could be considered a material event.

The FBI has deployed a large number of agents, looking at proprietary-trading outfits as well as fast-trading operations at brokers who buy and sell orders on behalf of clients, such as mutual funds and pension plans, the Journal said. 


Read More 

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2014 Stocks to Drop 50%

Stocks Will Collapse by 50% in 2014

It is only a matter of time before the stock market plunges by 50% or more, according to several reputable experts.

“We have no right to be surprised by a severe and imminent stock market crash,” explains Mark Spitznagel, a hedge fund manager who is notorious for his hugely profitable billion-dollar bet on the 2008 crisis. “In fact, we must absolutely expect it."

Unfortunately Spitznagel isn’t alone.

“We are in a gigantic financial asset bubble,” warns Swiss adviser and fund manager Marc Faber. “It could burst any day.” 

Faber doesn’t hesitate to put the blame squarely on President Obama’s big government policies and the Federal Reserve’s risky low-rate policies, which, he says, “penalize the income earners, the savers who save, your parents why should your parents be forced to speculate in stocks and in real estate and everything under the sun” 

Billion-dollar investor Warren Buffett is rumored to be preparing for a crash as well.

(Read More)

In the end rising interest rates should trigger the valuation collapse - but charts may act ahead of events 

This is market timing, Buyer-Beware territory, particularly as we only fixed 2008 with just a massive currency printing.