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You can do the opposite of pump and dump: there is an investment you want to buy, talk it down, buy it low.
by SuchAnonMuchWow 6y ago
You can do the opposite of pump and dump: there is an investment you want to buy, talk it down, buy it low.
- vermilingua 6y agoThat would be much more fitting, but does that apply to bonds? My understanding was that the whole point of bonds is that they're more or less immune to market forces, and run on their own schedule?
- eru 6y agoNo, not at all. The price of bonds with a long duration varies with the prevailing interest rate (and inflation expectations). Even if the solvency of the issuer is beyond doubt.
- betterunix2 6y agoActually the bond market is larger than the stock market and the bond market can impact stock prices -- sometimes an unexpected spike in interest rates i.e. a bond market sell-off can drive the stock market lower (literally happening in real-time as we speak).