One way to view a currency, we read somewhere recently, is as a national obligation secured by national assets. Those “assets” are loosely defined as economic growth (GDP) or the tax revenues a government can generate. A growing economy generates royalties and income taxes and demonstrates to international bond investors Australia’s ability to service interest and principal on debt.
October 9th, 2009 | Dan Denning | 18 comments | ContinuedAll Posts Tagged With: "bond investors"
New Trend in the Market: Sell Bonds and Buy Commodities
Gross finishes with this advice: “Bond investors should, therefore, confine maturities to the front end of yield curves, where continuing low yields and downside price protection is more probable. Holders of dollars should diversify their own baskets before central banks and sovereign wealth funds ultimately do the same.
June 9th, 2009 | Dan Denning | 10 comments | Continued
Fed Trying to Push Private Investors into Riskier Asset Classes
So from a strategic point of view, we believe equity investors want and need to see stronger economic and earnings results to drive indexes higher, while bond investors need just the opposite to calm Treasury yields down.
June 3rd, 2009 | Rob Parenteau | 0 comments | Continued
Between What Bond Investors Stand to Gain in Yield and What They Stand to Lose from Inflation
Bond investors are supposed to be the smartest of the lot. But there are times when the first become the last…when the smartest become the dumbest…and when yesterday’s roadmaps need to be turned upside down. This, we believe, is one of those times. Between what bond investors stand to gain in yield and what they stand to lose from inflation is a built-in loss of 1.8%.
September 1st, 2008 | Bill Bonner | 0 comments | Continued