I think he means gouging.
Wednesday, February 14, 2024
Friday, December 15, 2023
Monday, March 13, 2023
Saturday, September 24, 2022
Two conditions need to develop before buying bonds
. . . the trend in the bond market . . . still looks bearish. ...
As yields rise and inflation eases, the relative allure of bond payouts becomes attractive, in absolute and relative terms vs. other assets.
James Picerno, here.
Yields are indeed rising, but prices are still falling, so no, not quite yet. Bond prices ought to stabilize when inflation finally eases, and so far prices haven't stabilized.
VWESX is instructive.
There's just a handful of years back in the 1980s where the average price of this very long term investment grade bond fund had been below $8 like the current price is today.
That's one reason why Jeffrey Gundlach rightly says that bonds are "wickedly cheap".
But VWESX only just got there on September 20th, hitting $7.99. We're down to $7.88 this weekend.
Meanwhile yields across this investment grade spectrum are bunched up in the fours, with only about 55 basis points difference between the shorts and longs, and intermediates effectively paying the same as or more than longs.
Prices on the longs need to fall a lot more before making them more attractive than intermediates if you are going to settle for only similar yield.
After all, the long term average return of investment grade longs is north of 7.5%, not in the fours.
But what the hell do I know?
Invest, or don't, at your own risk.
Saturday, August 27, 2022
Seeing this headline html first thing Saturday morning is disorienting
https://www.marketwatch.com/story/u-s-stock-futures-slip-as-investors-await-fed-chairman-powells-jackson-hole-address-11661508928
Investors await Powell's address?
That was published 24 hours ago, before the Powell speech, and the contents were updated last evening just before 5:00 PM.
But the pain surely ain't in the Fed.
The only pain described in the story is in households, businesses, families, not in the Fed.
Those Fed guys are rich, and get paid very handsomely.
The top 100 employees each made $274k or more in 2020. They are all named, here.
That puts them in the top 2% of all wage earners in the US.
They're the elites.
They experience no pain.
The Federal Reserve System had 23,517 employees in 2021, with a total system operating expense of $5.7353 billion, or about $244k per employee.
They live in a bubble.
Everybody's just phonin' it in and getting the hell out of Dodge for the weekend.
Especially Drudge.
Wednesday, July 27, 2022
Friday, May 1, 2020
South Korea today has 0.0002 confirmed coronavirus cases per million population, America has 0.0033, 16.5x as many
Friday, February 21, 2020
30-year bond yield breaks to all time low
More:
On Friday the 30-year U.S. Treasury bond yield fell 5.2 basis points to 1.92% based on Tradeweb data to an all-time low of 1.89%.
They round it up to 1.90% at Treasury |