Can't decide which sounds worse. Fed OperationTwist or new DVD rental Quickster. Could both have same script writer? Way she's looking this morn, we'll quickster be in the dumpster. Remember complainin when couldn't earn even 2% in a money fund? Look again. Cant get that now in a 10 year lock-em-up bond - - junk excluded of course. 1.77 on 10 year Treasury at last look. Gold hit a speed bump too, being down $80 this morning. Done well though. Kinda like whenever I go fishin, they always say "shoulda been here yesterday." Oil way off at about $81. Look at that as a indicator where the big guys think global economy is headin. Two of my more recent dumber moves ... pre-payin in July for this winters heatin fuel and refinancing mortgage last week. Don't like all of this and expect not many of you do either. Even with a big bump up yesterday in HP on the Meg rumors, my DODWX put in another dismal day. Only winner besides a bond fund was HSGFX, up around 1.25, making John appear one of the smarter men on the planet. Alice in Bondland must me smiling too.
Comments
Market = WTF!?!!
Fed just announced that it will sell short term bonds and will buy long term bonds. It is balance sheet neutral. It will affect the long side of the yield curve making long term borrowing costs lower which is probably good for housing sector but not so good for banks (it will flatten the yield curve). Existing owners of long term bonds will get some price appreciation. It is also beneficial for other long term assets (after this panicky response subsides)