Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
"If, say, the 10-year note were to be capped at 2 1/2%, where it was at ahead of the QE2 program last fall, compared with the current 3%-plus level, the total return for a 10-year strip would come to over 10% in a 12-month span. Now put that in your pipe and smoke it! "
Play this using American Century Zero Coupon 2020 Inv (BTTTX):
or, American Century Zero Coupon 2025 Inv (BTTRX):
Bill Gross likes to redefine terms and pronouncements he has made if he fells like he is going to be wrong. He has changed the meaning of new normal a few times as well..
I keep watching these zero funds, too. A head scratcher for sure. With all of the current unknowns, I guess this house will allow the multi-sector bond funds mgr's. figure where to place the bets. However, I will not rule out these funds as events move forward. Mr. Bernanke and Co. do not want deflation and I expect interest rates to remain low to continue to push on the string and keeping their fingers crossed for good luck. I still feel there are more humps in the economic growth road ahead and I find a lack of a "plan" at any level of federal government. Still the same old fashioned money throws, this way and that way. Not much of true value and very little to inspire confidence by the general public.
On CNBC the other morning, a couple of Congressmen from different sides of the aisle talked about how their parties would be able to work together, and then proceeded to - for the next 2-3 minutes - accuse each other's parties of this, that and the other. I was surprised it did not get into a slap fight. Cofidence inspiring it was not. We don't have a plan, we don't have leaders willing to even work together. There was another CNBC political discussion the other week where the two guests started every sentence with "YOUR side did/didn't", emphasis on the "your."
On a side note: no mail in Canada today, postal workers on strike.
Hi Maurice, Won't disagree about the possibility of the "burning crotch" syndrome. Such possibilities for various sectors should always be in our thoughts, eh? Thank you and take care, Catch
Comments
"If, say, the 10-year note were to be capped at 2 1/2%, where it was at ahead of the QE2 program last fall, compared with the current 3%-plus level, the total return for a 10-year strip would come to over 10% in a 12-month span. Now put that in your pipe and smoke it! "
Play this using American Century Zero Coupon 2020 Inv (BTTTX):
or, American Century Zero Coupon 2025 Inv (BTTRX):
I keep watching these zero funds, too. A head scratcher for sure. With all of the current unknowns, I guess this house will allow the multi-sector bond funds mgr's. figure where to place the bets. However, I will not rule out these funds as events move forward. Mr. Bernanke and Co. do not want deflation and I expect interest rates to remain low to continue to push on the string and keeping their fingers crossed for good luck. I still feel there are more humps in the economic growth road ahead and I find a lack of a "plan" at any level of federal government. Still the same old fashioned money throws, this way and that way. Not much of true value and very little to inspire confidence by the general public.
Ok, pillow time at this house.
Take care,
Catch
On a side note: no mail in Canada today, postal workers on strike.
Such possibilities for various sectors should always be in our thoughts, eh?
Thank you and take care,
Catch