What are you folks doing in your 401k…Specifically, wrto bond funds?

[raty4R]

QE explained.
It’s by the Bank of England but I assume the Fed does/thinks the same thing. Pretty interesting. Makes me want to sell my metals and buy stocks.
Pamphlet indicates nothing bad can happen from quantitative easing.
Another piece to the puzzle, when trying to decide what to do.

excerpts:
“…More generally, the Bank of England’s purchases of both government and corporate bonds also increase the total demand for those types of assets, pushing up their prices. This is another way in which the Bank’s actions will make it cheaper for companies to raise finance.”…
…”Direct injections of money into the economy, primarily by buying gilts, can have a number of effects. The sellers of the assets have more money
so may go out and spend it. That will help to boost growth. Or they may buy other assets instead, such as shares or company bonds. That will push up the prices of those assets, making the people who own them, either directly or through their pension funds, better off. So they may go out and spend more.”… In addition, banks will find themselves holding more reserves.”
http://www.bankofengland.co.uk/monetarypolicy/pdf/qe-pamphlet.pdf

[raty4R]

another puzzle piece.
TIPS went negative yield on Monday.
Anticipating inflation??
http://www.reuters.com/article/idUSN2527792620101025

[raty4R]

another puzzle piece.
TIPS went negative yield on Monday.
Anticipating inflation??
http://www.reuters.com/article/idUSN2527792620101025

[raty4R]

another puzzle piece.
TIPS went negative yield on Monday.
Anticipating inflation??
http://www.reuters.com/article/idUSN2527792620101025

[raty4R]

another puzzle piece.
TIPS went negative yield on Monday.
Anticipating inflation??
http://www.reuters.com/article/idUSN2527792620101025

[raty4R]

another puzzle piece.
TIPS went negative yield on Monday.
Anticipating inflation??
http://www.reuters.com/article/idUSN2527792620101025

[BigGovernmentIsGood]

[quote=martink110]
Pamphlet indicates nothing bad can happen from quantitative easing.
[/quote]

Pamphlet lies. Something bad is already happening due to QE. Supposedly, the latest trend on Wall Street is for companies to issue debt in order to buy back their shares. They can do this because QE has pushed interest rates to near zero.

So companies like IBM with $10 billion in the bank are actually selling bonds and using the money to buy back their shares. Such a practice is not likely to end well and also helps to further explain why the stock market has become totally divorced from the economy.

[BigGovernmentIsGood]

[quote=martink110]
Pamphlet indicates nothing bad can happen from quantitative easing.
[/quote]

Pamphlet lies. Something bad is already happening due to QE. Supposedly, the latest trend on Wall Street is for companies to issue debt in order to buy back their shares. They can do this because QE has pushed interest rates to near zero.

So companies like IBM with $10 billion in the bank are actually selling bonds and using the money to buy back their shares. Such a practice is not likely to end well and also helps to further explain why the stock market has become totally divorced from the economy.

[BigGovernmentIsGood]

[quote=martink110]
Pamphlet indicates nothing bad can happen from quantitative easing.
[/quote]

Pamphlet lies. Something bad is already happening due to QE. Supposedly, the latest trend on Wall Street is for companies to issue debt in order to buy back their shares. They can do this because QE has pushed interest rates to near zero.

So companies like IBM with $10 billion in the bank are actually selling bonds and using the money to buy back their shares. Such a practice is not likely to end well and also helps to further explain why the stock market has become totally divorced from the economy.

[BigGovernmentIsGood]

[quote=martink110]
Pamphlet indicates nothing bad can happen from quantitative easing.
[/quote]

Pamphlet lies. Something bad is already happening due to QE. Supposedly, the latest trend on Wall Street is for companies to issue debt in order to buy back their shares. They can do this because QE has pushed interest rates to near zero.

So companies like IBM with $10 billion in the bank are actually selling bonds and using the money to buy back their shares. Such a practice is not likely to end well and also helps to further explain why the stock market has become totally divorced from the economy.

[BigGovernmentIsGood]

[quote=martink110]
Pamphlet indicates nothing bad can happen from quantitative easing.
[/quote]

Pamphlet lies. Something bad is already happening due to QE. Supposedly, the latest trend on Wall Street is for companies to issue debt in order to buy back their shares. They can do this because QE has pushed interest rates to near zero.

So companies like IBM with $10 billion in the bank are actually selling bonds and using the money to buy back their shares. Such a practice is not likely to end well and also helps to further explain why the stock market has become totally divorced from the economy.

[BigGovernmentIsGood]

[quote=martink110]another puzzle piece.
TIPS went negative yield on Monday.
Anticipating inflation??
http://www.reuters.com/article/idUSN2527792620101025%5B/quote%5D

Negative yields on TIPS signals deflation. Paul Krugman has been writing about how all signs point to deflation for over a year now (although no one on this board is likely to give him any credit for it).

[BigGovernmentIsGood]

[quote=martink110]another puzzle piece.
TIPS went negative yield on Monday.
Anticipating inflation??
http://www.reuters.com/article/idUSN2527792620101025%5B/quote%5D

Negative yields on TIPS signals deflation. Paul Krugman has been writing about how all signs point to deflation for over a year now (although no one on this board is likely to give him any credit for it).

[BigGovernmentIsGood]

[quote=martink110]another puzzle piece.
TIPS went negative yield on Monday.
Anticipating inflation??
http://www.reuters.com/article/idUSN2527792620101025%5B/quote%5D

Negative yields on TIPS signals deflation. Paul Krugman has been writing about how all signs point to deflation for over a year now (although no one on this board is likely to give him any credit for it).

[BigGovernmentIsGood]

[quote=martink110]another puzzle piece.
TIPS went negative yield on Monday.
Anticipating inflation??
http://www.reuters.com/article/idUSN2527792620101025%5B/quote%5D

Negative yields on TIPS signals deflation. Paul Krugman has been writing about how all signs point to deflation for over a year now (although no one on this board is likely to give him any credit for it).

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