We're gonna need a bigger boat is what the Fed might be thinking
As Jaws starts to pull this one down

I guess the question now becomes how long do we stall for? I suppose it depends on how aggressive the Fed is with QE.

Right, the borrowing is inflating the earnings and cash flow, the things that enable the dividends, take that away and...

Yeah

Was looking at NLY and it's 10% divvy if treasuries stayed low but slightly elevated. As the yield curve flattens that idea doesnt sound so hot.

Quote:

Where are they gonna go for returns? All of these baby boomers are so desperate to keep their 5% income rolling in.

Boomers, like the majority of investors buy the top of the market and sell the bottom. They are getting consistently fleeced for half of their money with each go around. This will continue until they completely flee the market and move into bonds (or ask the government to do it on their behalf by forced bond based retirement plans). It's not about returns. It's about capital preservation. If you manage to preserve your capital while everyone else gets wiped out, you win. It's that simple.

Because this is slow-motion, it give folks an opportunity to gradually shift their asset allocations, which, IMO is a good thing. It's better to move gradually rather than under duress.

I continue to slowly move to shorter durations and cash from relatively lower credit bond positions, and at times, to increase equity exposure as circumstances present.

Patience, grasshopper :)


N/not investment advice

Quote:

1.536%!

The bell tolls for thee!

The Euro is dying and everyone on the Continent is putting their money in US Treasury's. The banking system in Europe must be nearing collapse with this much hot money flowing to bills and notes.

The bad thing is that Congress will spend like mad and when this hot flow stops, the increase in yield will destroy America next.

Quote:

ow have Japan been paying out their pensions with yield at nothing for ten years?

New cashflow.

With their own savings as they buy up JBonds.

America is, uh, not so well positioned.

Quote:

Where are they gonna go for returns? All of these baby boomers are so desperate to keep their 5% income rolling in.

In 2008 they were desperate for their 8%.

Now it's 5%.

Soon to be 2%.

Quote:

Because this is slow-motion, it give folks an opportunity to gradually shift their asset allocations, which, IMO is a good thing. It's better to move gradually rather than under duress.

I continue to slowly move to shorter durations and cash from relatively lower credit bond positions, and at times, to increase equity exposure as circumstances present.

Patience, grasshopper :)

Nanna's advice is epic goodness.

1.46%

Time to refi

I'm with Randy.

Pru, Met and the big mutuals have annuity books that are obligated at as high as 7 % as far as the eye can see and they are all too big to fail/save...

Holy crap...

Quote:

If you manage to preserve your capital while everyone else gets wiped out, you win. It's that simple.

Yep that is what this almost boomer (1944) is doing. One year CD 1% and bond portfolio YTD 1.5% not much difference.

This would be *much* more entertaining if it was observed from another planet.

"Hey! Look what the Humans have done!"

Zzzzzzzzzzzzzzzzz BOOM!

Quote:

This would me *much* more entertaining if it was observed from another planet.

That's phunny. Is it original to you?

I think so, but with my advancing years who knows what is bouncing around my mind anymore.

Quote:

This would be *much* more entertaining if it was observed from another planet.

Definitely sig worthy.

I have an acquaintance who avers he is an alien come to earth *specifically* to watch "the big boom". Used to think he was crazy...

Travis Biggs of Traxis said he can not call bottom on 10yr that it looks like we're going way of Japan and Germany and this after Liesman was talking about Negitive fed rates as a discussion Fed has but they don't like the concept for it induces more unresponsible loan making

It induces more irresponsible loan making and it pens in the FOMC.

If the only way to go is UP, then your debt burden detonates spectacularly.

USA does not have the savings rate of Japan to make this last 30 years.

Once the money goes in, that's all folks.

Your daily monkey.

Not for nothing, but this is trashing so many risk and asset allocation models, it ain't funny.

Swissie 2 year if my Friday fried brain recollects correctly is something like a negative .36 percent, which means the Swiss are getting paid to borrow.

And, show me any published CAPM model that incorporates a negative risk free rate of return, please? I hope they're out there!

Nana, that reminds me iirc German 2 year was 0, at least that's what I think I heard.

And I thought THAT was crazy, but the Swiss---just ****ing wow!

Who sez you can't push on a string? If anybody can do it a central bankster can!