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Yen has been borrowed big time while the interest rate was stayed flat and close to zero for years as a carry trade for US bonds. But recently Japan has switched to new political party and the future monetary policy is unknown. Take a look at Yen/USD rate these couple days, it has gone up a lot in such a short time frame. If this trend continues, people may rush to buy back the Yen and dump bonds and this would lead to a bond disaster and added the weak US dollar policy to fuel the bond crisis. US dollar would be the key to determine whether this market goes. If USD has found a bottom and has innate power to move up then we should thank God. Otherwise, the second phase liquidation would begin and this time would be the bond market instead. So what would happen if bond bubble burst? I would expect USD to soar big at the beginning and then drop like a stone and make a new low afterwards, possible lower than 60 at worst by the end of this year. Money seeks for safe heaven; it won't be the stock market but highly possible would be the commodities and emerging markets. Gold first and silver second would be the greatest choices for individual investors since both of them have the portability" characteristics among commodities; you don't want a wagon of potatoes do you? I am currently evaluating the gold mining stocks and amazingly, the technical charts suggest they are about to break out. This implies gold price will shoot up as well since gold mining stocks would consider the leveraged way of holding gold. But this incurs risk of the company bankruptcy. There is an ETF for gold mining stock GDX which holds a basket of gold mining stocks which I would consider as to lower the risk of holding individual stocks, but the fund itself could be at risk as well. So the answer is you pick. There are couple companies I like of their great fundamental and efficiency. Here is my list: NXG, BVN and AUY While stock market is correcting itself and still ways to go, stock market seems holding firm. But if you take a look at the VIX, the greed and fear index, weekly MACD already confirms an up trend just started which couples the symptoms of last year before market crash. Would this a replay of last year's stock market crisis on top of the bond crisis?