How I Got Mark Cuban to Concede That Central Banks Have Cornered the Bond Markets

Mark Cuban just conceded to me that Central Banks have cornered the bond market.

Cuban is a billionaire investor, owner of the Dallas Mavericks, and reality TV star from Shark Tank.

He’s also begun making a series of strange media appearances in which he claims that if Donald Trump wins the US Presidency in November, “I have no doubt in my mind that the market tanks.”

Professionally speaking, I don’t have a horse in the race regarding the current US election. But regardless of who wins in November, the US and the rest of the world are primed for a massive Crisis (more on this shortly).

The issue is math, not politics.

However, I couldn’t pass up a chance to respond to Cuban’s tweet…

tweet1.png

———————————————————————–

The Single Best Options Trading Service on the Planet

THE CRISIS TRADER has produced an astounding 37% return on invested capital thus far in 2016.

We have a success rate of 70% meaning we make money on SEVEN seven out of TEN trades. And thanks to careful risk management we’ve already produced a return on invested capital of over 240% thus far in 2016.

Our next trade goes out this morning… you can get it and THREE others for just 99 cents.

To take out a $0.99, 30-day trial subscription to THE CRISIS TRADER…

CLICK HERE NOW!!!


Seriously, let’s cut the crap. Politics are irrelevant here.

The Central banks have set the stage for a massive market meltdown. Globally over $13 trillion in bonds have negative yields. Some sovereign yields are negative out as far as 5, 10, even 30 years.

This has NEVER happened before in the history of humanity.

Sovereign bonds are the senior most assets in the financial system. If they are in a bubble, EVERYTHING is in a bubble.

In this context, there is literally no such thing as real price discovery anywhere in the markets anymore. There are simply dozens of smaller bubbles all created by investors reacting to the bond bubble.

Let me give you an example…

In Europe, we’re about to see our first corporate bond issuance with negative yields. Yes, companies in Europe can now CHARGE you for the right to lend to them. As a result, there is now a bubble in European corporate bonds.

The bond bubble is the mother of all bubbles created by Central Banks. And billionaires like Cuban must know it. But getting him to concede it?

He did in his response…

tweet2.png

Note that Cuban doesn’t even try to debate my claim that Central Banks have cornered the bond market. He completely concedes the point and moves on to assert that he is worried that if Trump wins, Central Banks “may find other bonds” (which I take to mean that they won’t buy US Treasuries anymore).

Folks, we are witnessing the single biggest financial experiment in history.

Central Bankers have literally bet the financial system that their theories are correct. They believe that by cornering the bond market they can prop up asset prices forever.

Market corners never ever end well And billionaires like Cuban know it. He’s right to worry, but it’s a matter of math, not politics.

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

Disclaimer: The information contained on this website is for marketing purposes only. Nothing contained in this website is intended to be, nor shall it be construed as, investment advice by Phoenix Capital Research or any of its affiliates, nor is it to be relied upon in making any investment or other decision. Neither the information nor any opinion expressed on this website constitutes and offer to buy or sell any security or instrument or participate in any particular trading strategy. The information in the newsletter is not a complete description of the securities, markets or developments discussed. Information and opinions regarding individual securities do not mean that a security is recommended or suitable for a particular investor. Prior to making any investment decision, you are advised to consult with your broker, investment advisor or other appropriate tax or financial professional to determine the suitability of any investment. 

Opinions and estimates expressed on this website constitute Phoenix Capital Research's judgment as of the date appearing on the opinion or estimate and are subject to change without notice. This information may not reflect events occurring after the date or time of publication. Phoenix Capital Research is not obligated to continue to offer information or opinions regarding any security, instrument or service. 

Information has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. Phoenix Capital Research and its officers, directors, employees, agents and/or affiliates may have executed, or may in the future execute, transactions in any of the securities or derivatives of any securities discussed on this email. 

Past performance is not necessarily a guide to future performance and is no guarantee of future results. Securities products are not FDIC insured, are not guaranteed by any bank and involve investment risk, including possible loss of entire value. Phoenix Capital Research, OmniSans Publishing LLC and Graham Summers shall not be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided. 

Phoenix Capital Research is not responsible for the content of other websites or emails to which this one may be linked and reserves the right to remove such links. OmniSans Publishing LLC and the Phoenix Capital Research Logo are registered trademarks of Phoenix Capital Research. Phoenix Capital Management, Inc.
What Happens When the Everything Bubble Bursts?
  • By trying to corner the bond market (risk-free rate)
  • the Fed has created a bubble in everything
  • We call this THE EVERYTHING BUBBLE
  • Reserve your copy of our Executive Summary
  • To prepare for what's coming down the pike!