With short-term real interest rates on U.S. government bonds effectively negative, we’ve wondered lately why so many people complain that gold doesn’t have a yield (either). But it’s true. It doesn’t. It just sits there looking pretty and yellow and heavy – preserving value and capital better than other kinds of money in which you can choose to denominate your wealth.
June 28th, 2010 | Dan Denning | 8 comments | ContinuedAll Posts Tagged With: "treasuries"
Buy Japan
When we revealed our new Trade of the Decade in The Daily Reckoning earlier this year, the reaction we got from a lot of readers could be summed up in one word: “Huh?” Almost no one quarreled with the first part of our trade, “Sell US Treasurys.” But almost no one agreed with the second half, “Buy Japanese stocks.”
May 14th, 2010 | Addison Wiggin | 2 comments | Continued
Inflation Up, Stocks Down
Banks are making out like bandits…at least on paper. They simply post whatever earnings they feel like reporting, because loans and securities no longer have to be marked to market. So why not mark down bad loans at a glacial pace? Doesn’t matter that they might be in non- performing status and aren’t producing cash flow.
May 6th, 2010 | Dan Amoss | 2 comments | Continued
Volatility in the Police State
Stocks trade around 20 times earnings now…and the Dow is about 10 times the price of gold. Sometime in the future, you’ll probably be able to buy Dow stocks at 5 times earnings and maybe only 1 times the price of gold. Three thousand seems like a likely target, because that would move stock prices down into the right range from a P/E standpoint…
May 6th, 2010 | Bill Bonner | 6 comments | Continued
Sell Treasuries … Again
Treasury yields have been going down along the entire yield curve since 1983. This trend reached a crescendo during the crisis of 2008, when 10-year Treasury yields plunged to 2% and 90-day T-bills paid negative yields.
April 30th, 2010 | Addison Wiggin | 2 comments | Continued
A Free Market In Chains
US policymakers at the Federal Reserve and the Treasury Department have been trying to re-inflate the credit bubble by pumping trillions of dollars of fresh credit and currency into the financial system. The Fed is still maintaining these Keynesian tactics, despite the increasing possibility that inflation and other adverse outcomes will result.
April 23rd, 2010 | Dan Amoss | 0 comments | Continued
Bring Forward Demand, Push Back the Consequences
The discouraging aspect of all this is that so much capital remains tied up in non-performing assets. To save the bankers, we have killed off the future prospects for entrepreneurs.
April 23rd, 2010 | Dan Denning | 47 comments | Continued
If the Economy is Not Recovering It Isn’t Getting Enough Stimulus
But the big story? Stimulus!
Here is the International Herald Tribune on Monday:
“More Stimulus is Needed to Spark a Strong Recovery,” is the headline. According to the IHT, stimulus is working. And it will work even better if there were more of it.
August 10th, 2009 | Bill Bonner | 7 comments | Continued
The Bubble of All Bubbles In Treasuries
This last-gasp financial plan to purchase and support the Treasury market was and is, at best, a short-term fix to prevent the bubble of all bubbles from bursting. If we flash back to last fall, the stock market panic was driving some investors to guarantee a negative return on their money for the safety of the full faith and credit of the Federal Reserve. That same money that ran to bonds in order to escape equities is in danger of unwinding and going on the move again – after all, money goes where it is treated best. Don’t believe me? Just ask Warren Buffett…
June 17th, 2009 | Alan Knuckman | 2 comments | Continued
Paying More Than 3 Times as Much for Gold
The price of oil remains at $62…the American peso is still trading for peanuts ($1.39 against the euro)…and gold lost about $5 yesterday; it trades this morning near $953.
Do you have your positions in gold, dear reader? We hope so.
May 28th, 2009 | Bill Bonner | 12 comments | Continued
Investors Feel They Can Put Their Money into Treasuries and Not Worry
But maybe they should spare a thought or two about what is really going on. Lending money to the US government is no sure thing. Far from it. In fact, under the present circumstances, lending money to the feds is asking for trouble. Recently, you could put your money in T-bills and get zero yield. “An extraordinary thing…” said Warren Buffett…
May 28th, 2009 | Bill Bonner | 4 comments | Continued
Look out! It’s The Bond Vigilantes!
This is the media name for the bond traders who scuppered Bill Clinton’s big spending plans during his first term. Back then, the market was capable of imposing some fiscal discipline on the U.S. government by forcing it to pay higher rates of interest for the debt it sold to finance its spending plans.
February 12th, 2009 | Dan Denning | 3 comments | Continued
