Someone Please Explain How Jerome Powell Is Any Different Than Previous Fed Chairmen?

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The death knell for the "last bastions of safety" in equities has finally arrived for analysts at Morgan Stanley. The violent move up in U.S. Treasury yields has put investors on the threshold of casting out growth stocks -- the last act of a rolling bear market Morgan Stanley sees playing out. According to the strategists, strength in the broader index has been masking bear market-like pain for different groups of shares. Growth companies, which consistently post high earnings multiples, are especially vulnerable to rate risk, according to strategists at the bank. If they’re right, it would mark the demise of the biggest winners of America’s bull market in equities that’s battered cheap value stocks.

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Ron Paul believes the bond trading pits are giving investors a dire message about the state of the nation's economy.
According to the former Republican congressman from Texas, the recent jump in Treasury bond yields suggest the U.S. is barreling toward a potential recession and market meltdown at a faster and faster pace.

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We're getting awfully close. I'd be surprised if you don't have everybody agreeing with what I'm saying next year some time," he said Thursday on CNBC's "Futures Now." His remarks came as the benchmark 10-Year Treasury yield, which moves inversely to its price, rallied to seven year highs, intensifying fears over rising inflation. It may be beneficial for personal savings accounts, but it could deliver irrevocable damage to those in adjustable mortgages, or for auto buyers looking to finance a new vehicle. "It can be pretty well validated by looking at monetary history that when you inflate the currency, distort interest rates and live beyond your means and spend too much, there has to be an adjustment," he said. "We have the biggest bubble in the history of mankind."

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