Our FEATURE today highlights a major paradigm shift in the global bond markets triggered by the Fed's nominal increase in the Fed Funds rate of .25 BPS. China, in particular, was dramatically impacted by the Fed's decision as their 10 treasury bond yield soared to 3.4% at a time when their economy is faltering, their bank loans are defaulting and the yuan is devaluing. To US investors who purchase bonds to mitigate and diversify risk they need to recognize that the 35 year old bond bull market is over which requires a change in their strategy. Other topics include: Silicon Valley goes to the "Tower", the demise of the "evil twins" Fannie & Freddie, POTUS' hack, Monday's electoral vote, the French Revolution and Hillary's effort to protect America's democracy.
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