Part 2

Equities Are Junior in The Capital Structure- Bonds Lead Stocks

“I and others were mistaken early on in saying that the subprime crisis would be contained. The causal relationship between the housing problem and the broad financial system was very complex and difficult to predict.”— Ben Bernanke

“Bonds lead stocks. That’s key because we think stocks follow bonds, or bonds lead stocks.” – Tom Lee

Many intelligent people were initially dismissive of deteriorating conditions in the mortgage market.  Housing had always been a sturdy so...

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Tom Lee's Seven Principles of Evidence-Based Research
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