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As of 11am, pretty much everything; except the $US is happy FINVIZ futures.
The equity/bond forces continue the battle.
The 10 year note price was - 1.1% for awhile in the 3 hour period, pre-market; and is now positive at about, + .3%. This is a very large swing for this issue. The trading servers better have the extra air-conditioning/air flow in place today and next week, too; as some of the chips are going to remain very hot. Let us all celebrate. Both equities and bonds will all be winners today............well, we'll have to watch "what" about 2:30 pm and after brings.
Oh, well; past my ventures into Fed. thinking and back to work I must go. Regards, Catch
My concern remains the seniors and savers who have to be getting a tad pissed at this point. Those in fixed income almost entirely should consider looking into even a consumer staples or at least something like the S & P Low Vol. fund (SPLV), which also offers the plus of a monthly dividend.
Yup, that continues; too. The least of Ben's considerations, although he has noted that problem. A roadside lcd sign yesterday indicated a MI bank, Flagstar was offering a 1.03%, 1 year CD. Okay......... However, this bank has been one of the high offer CD rate banks since the market melt; as their cash position was pretty nasty; and I suspect this remains, although I have not looked at their financials in 3 years. I am surprised they have not be purchased by another bank. And, as we likely both agree; there are a boatload of +75 age folks who have had little to do with bond/equity investing and will not go there, either or ever. They will continue to lose purchasing power; but be relatively safe and away from the maddening crowds of Wall St. and beyond. They will also.....not.......travel the advisor route.
Hi OJ, I was thinking about you when I was typing the words..........and the "number". EDIT is a touch away if you would prefer I adjust the number higher...:):):) We older ones must take comfort that our age has helped give us the gift of knowledge and experience, eh? Anyone a day younger may still be behind us in these departments. Take care of yourselves, Catch
Reply to @scott: You wrote - "My concern remains the seniors and savers who have to be getting a tad pissed at this point ..." As a senior, I resemble that remark. Have never bought the idea that seniors should play defense and limit holdings to fixed income. I'd suggest a diversified mix based on needs & risk tolerance. I'd argue in favor of higher risk tolerance because most pull only a small % from their investments every year. Market gyrations shouldn't ding them too badly. Obviously, if a large % of $$ needs to be immediately available, should be in fixed income. Take care.
As "Arnold" noted in the movie, Terminator; "I'll be bacccccck." Don't know if Mr. Bernanke has seen the show; but he has likely heard the phrase. 'Course, the movie "Run Silent/Run Deep" also holds some position with the game of wait and see; that we too, are involved with.
Reply to @Old_Joe: I should say - What a great site. Plenty of support for seniors & others here. Don't have to be sitting in cash at .000001% with all the informative chatter and valuable info. Take care
My standard response to events like Jackson Hole is: "When all is said and done, more is said than done." Uncle Ben is a banker, so any changes will help banks, but probably not help us seniors.
Reply to @hank: I agree with you, but I think there's a fairly large audience (and probably larger since 2008) that's near-retirement that just is thinking that they - after 2001-2002 and 2008 do not want to go through that again. The downside of that is really what Old Joe said (quite perfectly!), but I don't think those people are going to leave fixed income anytime soon.
Additionally - and this is definitely a risk - I rather like the MLP management companies (Kinder Morgan and Enbridge), where the company is entirely invested in the MLP - owning an MLP and getting dividends (in shares only, not cash, but the benefit is no tax hassle. ) See - http://seekingalpha.com/article/741151-how-to-earn-tax-free-dividends-on-2-quality-mlps
There's a lot out there where one can have investment in things like real assets and still get a very nice yield, although things like REITs have admittedly run up a lot.
Reply to @scott: Yep - conventional wisdom can sometimes lead us astray. 15-20 years ago I would have agreed with John Bogle's adage about % of fixed income being tied to your age. Today, I doubt even he would agree with that. - And ... I understand the concern of oldsters post-2008. Guess this has to do with education and how hard somebody wants to work at growing those assets.
Yeah, well we may now have the gift of knowledge and experience, but we also have the gift of high blood pressure and cholesterol. And some other gifts are fading fast... never mind...
Reply to @scott: Savers are buying bonds and dividend stocks which are both riskier than holding cash or CDs. Thus, the policy is working to encourage risk taking even if the risk taking is moderate.
Comments
The equity/bond forces continue the battle.
The 10 year note price was - 1.1% for awhile in the 3 hour period, pre-market; and is now positive at about, + .3%.
This is a very large swing for this issue. The trading servers better have the extra air-conditioning/air flow in place today and next week, too; as some of the chips are going to remain very hot.
Let us all celebrate. Both equities and bonds will all be winners today............well, we'll have to watch "what" about 2:30 pm and after brings.
Oh, well; past my ventures into Fed. thinking and back to work I must go.
Regards,
Catch
And, as we likely both agree; there are a boatload of +75 age folks who have had little to do with bond/equity investing and will not go there, either or ever. They will continue to lose purchasing power; but be relatively safe and away from the maddening crowds of Wall St. and beyond. They will also.....not.......travel the advisor route.
I was thinking about you when I was typing the words..........and the "number".
EDIT is a touch away if you would prefer I adjust the number higher...:):):)
We older ones must take comfort that our age has helped give us the gift of knowledge and experience, eh?
Anyone a day younger may still be behind us in these departments.
Take care of yourselves,
Catch
said and done, more is said than done." Uncle Ben is a banker,
so any changes will help banks, but probably not help us seniors.
Additionally - and this is definitely a risk - I rather like the MLP management companies (Kinder Morgan and Enbridge), where the company is entirely invested in the MLP - owning an MLP and getting dividends (in shares only, not cash, but the benefit is no tax hassle. ) See - http://seekingalpha.com/article/741151-how-to-earn-tax-free-dividends-on-2-quality-mlps
There's a lot out there where one can have investment in things like real assets and still get a very nice yield, although things like REITs have admittedly run up a lot.
Derf
:-[[