The Near Miss in The Bond Market

A rapid rise in bond yields made mincemeat of the Nasdaq, overseas equities & Catherine Wood's innovation stocks. Tough news for the Degenerate Portfolio again. We now live in a world where the choreography between bond yields and the Nasdaq is predictable. Rates rise and the future earnings of technology giants take a beating. 

So what keeps pushing bond yields higher? The Wall Street Journal says fears of inflation spurred by a rapid economic recovery. Which has the knock-on effect of the Fed having to raise rates in the future...maybe. But James explains the real reason. A liquidity crisis near miss in 7-year treasuries that was unforeseen.

As a bonus, we discuss the rise of SPACS! What's a SPAC? And are they driving a speculative bubble? Or are they truly a financial innovation spurring real innovation.