I am a great fan of this service. Thanks for patiently answering the many questions on Bond yields...I agree that the bond yields are low and a correction is due... Getting timing is a real challenge. Any reasons as to the timing of the bond markets corrections now (just on the back of Fed statements and that of a couple of funds?). I feel that Central Banks will continue to print money forcing investments in bonds for the following reasons
a) Printing money is all the central banks know
b) Real economies are still "quite weak" 
c) There could be real curbs on how Central Banks are directing the money (note deliberations on role of challenges on the Fed and RBI in India).
d) No real chance of consumption pick up in the short run due to wage pressures and productivity pressures and wealth concentration.

If this printing continues I see asset bubbles (including the bond one) continue for some time and moving from one asset to another. Is that a rational deduction and is there any other end possible for this cycle (assuming no political or philosophical disruptions). Your thoughts would be most helpful.

David Fuller's view

Thanks for your comments.  We are fans of our subscribers and learn from these interactions. 

Timing is always a challenge, although price charts certainly help.  Trend changes are acted out by humans so plenty of psychology is involved, in addition to fundamental and technical perceptions.  Fed statements on markets are usually noteworthy.  Your points are interesting and certainly suggest that yields will not move up in a straight line for long.  However, I think the bigger moves will now generally be to the upside, as the cycle changes.  After all, developed country bond yields could not go much lower and monetary stimulus eventually leads to economic recovery.  Also, markets are usually leading indicators.

We certainly have significant bond bubbles now and I think we will  develop some equity bubbles, followed by cyclical, moderate bear market shakeouts.