December 3, 2010

The Story Of 2011 Will Be Interest Rates.

"The market story of 2011 I believe will be interest rates. In Asia, central bankers will raise them in order to normalize the level relative to growing inflation. In Europe, sovereign stress will keep them elevated and in the US, a recovering economy and rising inflation will see them higher in the face of the Fed’s best attempt to suppress them. With respect to equities, this rising rate environment will create a challenge in terms of impacting still overleveraged economies and companies and in pricing risk. Because of the influence of rates, a good economy doesn’t always equate to a good stock market as the past two years saw a good stock market and a weak economy."

in Ritholtz.com

Related: ProShares UltraShort 20+ Year Trea (ETF) (Public, NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (Public, NYSE:TLT) , SPDR S&P 500 ETF (Public, NYSE:SPY) , SPDR Dow Jones Industrial Average ETF (Public, NYSE:DIA)

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