The silent elephant in the room
The one market which kind of is the "elephant in the room" that the general public hardly notices is the US bond market. Bonds are now in their fifth month getting destroyed, holy crap! When has that been mentioned the last time in the coffee corner?
I mean, look at this:
That's a monthly chart of course, so it does not look very spectacular.
Do you remember how we used to dive off the 10m platform? That's just about what bonds are doing, getting completely crushed. But since they had been all the way up there in lofty heights this might just be the tiny start of it. Be as it might, I think they are reaching a little bit of support there and even under Trump monetary policy will not change 180°. So I dipped my feet into this market, which is actually nice because it pays some carry. So I can have patience.
I wish someone could explain to me how bonds work exactly. I mean I understand when they fall, yields rise and so on. But there are a couple of open questions that even my Wall Street friend could answer. Or I just didnt get it.
So I hope that a lot of folks will see the 30y bonds as an alternative to Dow at 20k and will want to purchase from me at say 155 soon. Wishful thinking? That's all I do anyway...
* Remember this is not investment advice nor am I recommending anything that you should do. I am not taking responsibility for any of your decisions.
I mean, look at this:
Do you remember how we used to dive off the 10m platform? That's just about what bonds are doing, getting completely crushed. But since they had been all the way up there in lofty heights this might just be the tiny start of it. Be as it might, I think they are reaching a little bit of support there and even under Trump monetary policy will not change 180°. So I dipped my feet into this market, which is actually nice because it pays some carry. So I can have patience.
I wish someone could explain to me how bonds work exactly. I mean I understand when they fall, yields rise and so on. But there are a couple of open questions that even my Wall Street friend could answer. Or I just didnt get it.
So I hope that a lot of folks will see the 30y bonds as an alternative to Dow at 20k and will want to purchase from me at say 155 soon. Wishful thinking? That's all I do anyway...
* Remember this is not investment advice nor am I recommending anything that you should do. I am not taking responsibility for any of your decisions.
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