The Meaning of Negative Interest Rates with Don Coxe


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The Solari Report 2015-06-04

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The Solari Report 2015-06-04

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Introduction

ThemeIs the Pro-Centralization team is having a Humpty Dumpty Moment?

Money & MarketsThis week in Money & Markets, Catherine discusses the latest in market movements, as well as the latest in trends.

Hero Our hero this week is Alastair Thompson and Malcolm Gladwell.

Ask Catherine Catherine answers questions submitted by subscribers.

Question #1:

Hi Catherine, Did you listen to Marshall Masters on Coast to Coast tonight, Thursday 5/21???? He is the first person I’ve heard that sounds like he knows the true story about the trillion dollar ChemTrail program. He says they are controlling the jet stream and directing rain fall to water the mega GMO crops our country has. The byproduct is that water is being diverted away from California, effectively throwing California under the bus. Marshall also said these tankers that spread the chemicals have their own sophisticated guidance system and that the chemicals these tankers disperse on us all are so toxic that the personal loading them on the tankers are all dressed in hazmat suits; This is the 1st explanation I’ve heard that make financial sense. What can we do to protect our-selves????

I live in Wasilla, Alaska and we no longer have enough snow for the sled dogs to run the races they use to.
I hope this information helps you.
Dale

Question #2:

Dear Catherine:

Here’s a story I wanted to pass along showing that the FBI is flying surveillance missions over U.S. cities while utilizing fictitious business names when they’re conducting the operations:

http://www.fox23.com/ap/ap/washington/fbi-behind-mysterious-surveillance-aircraft-over-u/nmSh5/

Question #3:

Dear Catherine:

Someone I’d love to hear you interview on The Solari Report is Dr. Marcia Angell, former Editor in Chief of the New England Journal of Medicine. She has lectures posted on YouTube where she totally blows the whistle on the pharmaceutical industry, and she says that we can no longer rely on their studies, their conclusions, and even on what our own doctor is telling us. Here is a link to a lecture of hers that I greatly enjoyed titled, “The Truth About the Drug Companies”:

http://www.youtube.com/watch?v=uDbQNBla6aU

Let’s Go to the Movies!This week in Let’s Go to the Movies!, Catherine reviews the documentary Rush: Beyond the Lighted Stage. A film about the Canadian rock band.

DiscussionCatherine discusses her interview with Don Coxe.

Closing

June 11: The Bilderbergers with Dr. Joseph Farrell

June 18: A Solari Report with Congresswoman Marcy Kaptur

June 25: Unpacking Baltimore with Junious Ricardo Stanton

“Six years of ingesting financial heroin has doubtless anesthetized most bond investors. They may be about to experience a pain they have not felt in decades.”
~ Don Coxe

Don Coxe has 42 years of institutional investment experience in Canada and the US. As a strategist and investor, he has been engaged at the senior level in global capital markets through every recession and boom since the onset of stagflation in 1972. He has worked on the buy side and the sell side in many capacities and has managed both bond and equity portfolios, served as CEO, CIO and as Research Director.

Don leads the Global Commodity Strategy investment management team – a collaboration of Coxe Advisors and BMO Global Asset Management. He is advisor to the Coxe Commodity Strategy Fund and the Coxe Global Agribusiness Income Fund in Canada, and the Virtus Global Commodity Stock Fund in the US.

In our discussion on the Solari Report this week, Don reviews the nine sovereign bond credits that are now trading at negative interest rates at maturities from 1 to 10 years. He explains that there is literally is no precedent for what the bond market is about to experience as a result of negative interest rates. He reminds us, “Not only is there nobody managing money today who was managing Treasury Bonds back in the Kennedy administration, there are very few who were managing bonds in the bear market under Nixon.”

Other thoughts from our discussion this Thursday:

  • When you find out that pre-Napoleonic war yields were higher than current bond yields, you realize that we do not have precedence.  If you open the text books, you will not find anything that will prepare you for what has to happen as we go to “normal” yields.
  • We’re talking about tremendous dislocations in a huge pile of assets that will send all the other markets in different directions.
  • It is possible that people at the Fed may be saying: “If it’s going to happen when I’m here, then I’m going off the FOMC next year.”
  • Although there will be opportunities, the biggest opportunities are likely to include equities (versus bonds).

In Let’s Go to the Movies, I will review Rush: Beyond the Lighted Stage, a documentary about the one of the most popular (and unheralded) rock bands in the world: Canadian rock band Rush.

Please join Don Coxe and me on the Solari Report this week! Not a subscriber? Learn more here…

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