4 ms·

That’s a bad idea. Yields can’t exactly go much lower.

by freejulian 9y ago

Finnucane 9y ago
+2 beats -12.
- freejulian 9y ago
  As more people flee to bonds the price rises, sending yields even lower. Also, inflation is higher than 2%, so you’re still losing money. Bitcoin is the only safehaven in times like these, the market just hasn’t realized it yet.
  - chefkoch 9y ago
    >Bitcoin is the only safehaven in times like these, the market just hasn’t realized it yet. So it doesn't work?
radicaldreamer 9y ago
It's better to hold onto your money than to lose it.
deleted 9y ago
[deleted]
joezydeco 9y ago
"The yield on 10-year U.S. Treasury debt hit a four-year high of 2.885 percent, having jumped almost 7 basis points on Friday." https://www.nasdaq.com/article/wall-st-opens-lower-on-rising-bond-yields-inflation-concerns-20180205-00756 https://www.nasdaq.com/article/wall-st-opens-lower-on-rising... Tax cut stimulus + already stimulated economy = inflation. Inflation concerns = higher bond yields. Higher bond yields = people dumping stocks for bonds.
- freejulian 9y ago
  Inflation is higher than 2.885%. Anyone buying bonds now is A) causing yields to drop B) still losing money to inflation.
  - efuquen 9y ago
    No, it isn't. Inflation hasn't event hit 2% (Fed goal) yet. https://www.thebalance.com/current-u-s-inflation-rate-statistics-and-news-3306139 https://www.thebalance.com/current-u-s-inflation-rate-statis...
  - dragonwriter 9y ago
    > Inflation is higher than 2.885% Official BLS has had it at a 2.0% annual rate for the first half of 2017 and a 1.7% for the second; some citation would be welcome on the claim that it's jumped to something above a 2.885% annual rate since...
    - freejulian 9y ago
      Sorry, inflation in the price of things people actually want to buy. The government has every incentive to lie about real inflation.
      - dragonwriter 9y ago
        > Sorry, inflation in the price of things people actually want to buy And still, actual evidence that the rate of inflation “in the price of things people want to buy” is 2.885% or higher is missing. Trying to blur the topic is not a substitute for supporting your fact claims.
        freejulian 9y ago
        Missing? Basic shelter needs increase in price roughly 8% per year.
        9y ago

That’s a bad idea. Yields can’t exactly go much lower.

Finnucane 9y ago

+2 beats -12.

freejulian 9y ago
As more people flee to bonds the price rises, sending yields even lower. Also, inflation is higher than 2%, so you’re still losing money. Bitcoin is the only safehaven in times like these, the market just hasn’t realized it yet.
- chefkoch 9y ago
  >Bitcoin is the only safehaven in times like these, the market just hasn’t realized it yet. So it doesn't work?

radicaldreamer 9y ago

It's better to hold onto your money than to lose it.

deleted 9y ago

[deleted]

joezydeco 9y ago

"The yield on 10-year U.S. Treasury debt hit a four-year high of 2.885 percent, having jumped almost 7 basis points on Friday." https://www.nasdaq.com/article/wall-st-opens-lower-on-rising-bond-yields-inflation-concerns-20180205-00756 https://www.nasdaq.com/article/wall-st-opens-lower-on-rising... Tax cut stimulus + already stimulated economy = inflation. Inflation concerns = higher bond yields. Higher bond yields = people dumping stocks for bonds.

freejulian 9y ago
Inflation is higher than 2.885%. Anyone buying bonds now is A) causing yields to drop B) still losing money to inflation.
- efuquen 9y ago
  No, it isn't. Inflation hasn't event hit 2% (Fed goal) yet. https://www.thebalance.com/current-u-s-inflation-rate-statistics-and-news-3306139 https://www.thebalance.com/current-u-s-inflation-rate-statis...
- dragonwriter 9y ago
  > Inflation is higher than 2.885% Official BLS has had it at a 2.0% annual rate for the first half of 2017 and a 1.7% for the second; some citation would be welcome on the claim that it's jumped to something above a 2.885% annual rate since...
  - freejulian 9y ago
    Sorry, inflation in the price of things people actually want to buy. The government has every incentive to lie about real inflation.
    - dragonwriter 9y ago
      > Sorry, inflation in the price of things people actually want to buy And still, actual evidence that the rate of inflation “in the price of things people want to buy” is 2.885% or higher is missing. Trying to blur the topic is not a substitute for supporting your fact claims.
      - freejulian 9y ago
        Missing? Basic shelter needs increase in price roughly 8% per year.
        9y ago