As of 10:45 this morning Bloomberg is displaying a 1.49% yield on the 10-Year treasury bond. (Story from CNBC
) The equity market doesn’t appear to like it very much. If you own intermediate term bonds (5 year duration) you’ll loose a bit, but equity investors may take a much larger hit if rates continue to rise. (conjecture, of course).
Running into equities to avoid the bond risk might amount to burning down the house to get rid of the mice. Keep in mind that as your bond / bond fund loses paper “value”, the rate of interest you are being paid increases. So it’s a 2-way street for those on the short-intermediate end of the curve.
Good thread from @Sven
re Munger’s take on bitcoin. I tend to agree with Charlie. https://www.mutualfundobserver.com/discuss/discussion/57794/munger-on-bitcoin
Yesterday GameStop’s stock price rose over 100% in a single day. That kind of speculative erotism amounts to gambling. I also fear it points to a lot of “froth” in other areas / asset classes. Which ones? That’s the puzzle.