Bond yields dropping again

[quickfeet]

I did Nazi that coming

Also LOL at the image they used for the article. Had to squeeze in the pondering glasses-wearing black man and a couple vaccine vials - poetic to say the least

 

[BigBucnNole]

May have something to do with housing market slowing.

 

[America 1st]

NFG

 

[Tell_Sackett]

It is all an illusion. The Fed has completely disconnected the bond market from reality.

 

[quickfeet]

It is all an illusion. The Fed has completely disconnected the bond market from reality.

Are you the thoughtful black guy from the picture? I bet you are, that sounds like something he would say

 

[Tell_Sackett]

Are you the thoughtful black guy from the picture? I bet you are, that sounds like something he would say

Even better.... I identify as him.

 

[America 1st]

May have something to do with housing market slowing.

I was really hoping for a crash sooner than later. This cheddar is burning a hole in my pocket.

 

[CDDP]

Wild times with the bond market.

 

[ChicagoFats]

Wonder what the implications of this are?

Just ANOTHER indicator that everything is overvalued? Or something else ...

 

[shiv]

Wonder what the implications of this are?

Just ANOTHER indicator that everything is overvalued? Or something else ...

What you thinking?

edit: as in big picture. I won’t hold you to it

 

[ChicagoFats]

What you thinking?

edit: as in big picture. I won’t hold you to it

I just think everything is overvalued right now. The government has pumped our economy full of steroids, i.e. free money.

There will be a cost to that free money, I just don't know what it is yet, nor when it will rear its ugly head. My most immediate concern is inflation and I see real estate as good a hedge as any. You will always value the roof over your head in proportion to other expenses. And with rentals or leases you can re-negotiate them usually on a yearly basis.

I'm not a big bond guy so don't know the implications of the junk bond market going below inflation. Here is a 5 year chart of junk bonds .... it seems pretty steady. So inflation rising is probably the bigger story in reference to the original post.

Acknowledging that this may be "Captain Obvious" but its my opinion that inflation is running a lot hotter than the official numbers being released.

 

[shiv]

I just think everything is overvalued right now. The government has pumped our economy full of steroids, i.e. free money.

There will be a cost to that free money, I just don't know what it is yet, nor when it will rear its ugly head. My most immediate concern is inflation and I see real estate as good a hedge as any. You will always value the roof over your head in proportion to other expenses. And with rentals or leases you can re-negotiate them usually on a yearly basis.

I'm not a big bond guy so don't know the implications of the junk bond market going below inflation. Here is a 5 year chart of junk bonds .... it seems pretty steady. So inflation rising is probably the bigger story in reference to the original post.

Acknowledging that this may be "Captain Obvious" but its my opinion that inflation is running a lot hotter than the official numbers being released.

View attachment 31284

I’m hedged very well with RE. Not particularly worried about myself and I’m in good position to really profit off inflation, but have enough reserves to capitalize on a popped bubble scenario.

I’m worried about how much this financial experiment is going to fuck those with no real assets. And then the government is going to tax the middle class harder to push them down. I figured out how to side step a lot of bullshit taxation by running side businesses, but the lower and middle class is looking pretty fucked in the long term.

 

[Tell_Sackett]

Wonder what the implications of this are?

Just ANOTHER indicator that everything is overvalued? Or something else ...

One basic implication would be that the bond market is screaming inflation is highly transitory. I don't agree, but the BLS can smooth the CPI to whatever number strikes their fancy so they may be able to make it look transitory.

Rates in all bond asset classes should be way higher.