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John Waggoner: Investors' Lust For Bonds Continues In Their Hunt For Yield
Than there's poor Jimmy Carter who got himself in a heap of trouble in '76 for confessing (in a Playboy interview) that he had "lusted" in his heart many times.
From the article: "Powering the bond rally is an enormous thirst for yield, fueled by negative interest rates in nearly a quarter of the world. About $8 trillion of government bonds worldwide offered yields below zero, according to Bloomberg, affecting some 500 million people. Even though the bellwether 10-year Treasury note yields just 1.54%, that yield is far more appealing than a guaranteed loss." Also from the article: "Investors worldwide have poured $202 billion into bond funds this year, according to J.P. Morgan Chase". Unknown is who "investors" are per the article.
>>>One shouldn't leave out the "twitchy" factor = perceived safety.
Total return = yield + price performance, eh?
I see the trend as much to the price performance as yield. Those continuing to suspect that yields will remain low for an extended period of time are banking on price performance, although perhaps at a slower pace than previous.
Similar trends exist in broad and various sector equity area, eh? Equity growth and value have their swings and trends, too. Hot money still looking for the best bang for the buck.
Are "investors" per the article, include sovereign funds, pension funds and related, as well as individual investors? Most of the "large monies" group of investors are scratching their investing heads as much as anyone at this discussion board. So, don't feel overly confused by the ongoing perversions of the market place; at least relative to your intellect. You have company for such a status, PhD's or not.
Comments
Than there's poor Jimmy Carter who got himself in a heap of trouble in '76 for confessing (in a Playboy interview) that he had "lusted" in his heart many times.
Another President who "lusted" in his heart (s) ?
Clinton and Lewinsky on a 1998 Abkhazia stamp
https://en.wikipedia.org/wiki/Lewinsky_scandal
From the article: "Powering the bond rally is an enormous thirst for yield, fueled by negative interest rates in nearly a quarter of the world. About $8 trillion of government bonds worldwide offered yields below zero, according to Bloomberg, affecting some 500 million people. Even though the bellwether 10-year Treasury note yields just 1.54%, that yield is far more appealing than a guaranteed loss."
Also from the article: "Investors worldwide have poured $202 billion into bond funds this year, according to J.P. Morgan Chase". Unknown is who "investors" are per the article.
>>>One shouldn't leave out the "twitchy" factor = perceived safety.
Total return = yield + price performance, eh?
I see the trend as much to the price performance as yield. Those continuing to suspect that yields will remain low for an extended period of time are banking on price performance, although perhaps at a slower pace than previous.
Similar trends exist in broad and various sector equity area, eh? Equity growth and value have their swings and trends, too. Hot money still looking for the best bang for the buck.
Are "investors" per the article, include sovereign funds, pension funds and related, as well as individual investors? Most of the "large monies" group of investors are scratching their investing heads as much as anyone at this discussion board. So, don't feel overly confused by the ongoing perversions of the market place; at least relative to your intellect. You have company for such a status, PhD's or not.