Kitco NEWS Interviews
Kitco NEWS Interviews
Kitco NEWS, David Lin
Frank Holmes: Yields are like 'rocket ship'; what happens when they crash back to Earth?
12 minutes Posted Mar 9, 2021 at 9:39 pm.
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Yields cannot rise “hyperbolically” forever, and within the next 30 days they should mean revert, creating a very bullish environment for risk assets, said Frank Holmes, CEO of U.S. Global Investors.
“The [10-year Treasury yield] has gone hyperbolic…it’s not like an airplane taking off, this is like a rocket going to space. Anytime you have something with a three-standard deviation move, it creates unexpected consequences in capital markets,” Holmes said “What we saw was the 10-year yield went above the S&P dividend yield and that automatically creates a flow of capital out of the stock market into bonds, and I think we’re going to get a correction here over the next 30 days, and that correction will be very, very positive for gold and silver, and the stock market, along with the crypto.”