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With respect to the EPJ article about the bond market, I just got this today from Casey Research. I think it’s very instructive reading, but want to make it clear that I am NOT recommending clicking on the two marketing links in the middle of the article – it’s classic technique for the new majority owner of Casey Research (Porter Stansberry). And one of the ads is for stuff from Jim Rickards. I have no faith in him either. Just sayin….

The overall article, however, is quite instructive as it pertains to the bond (especially junk – or “high yield” – bond) market. Casey’s subscription newsletters have been harping about that for a long time (I still subscribe to two because of the targeted information in them that pertains directly to some small (and dwindling) investments we have in a small corner of the market).

What’s particularly interesting is what they’ve added on top of the bond market issues: the stock market, even the S&P 500. Just a few companies that don’t really produce much of anything except intellectual and/or entertainment products (I don’t consider software a major production item, since a relatively small number of people can write it, and it takes relatively limited amount of machinery/technology to produce, wrap, and ship it). Microsoft, Google, Facebook, Netflix, and Amazon are skyrocketing, and they’re the only reason that market is still up. The broader market is anemic at best. Here’s the on line version of the email I got today for anyone interested. It’s coming, alright – we just don’t know how much longer they can keep the power on to the life support system.