[HereWeGo]

Actually, some countries with fairly strong economies recently cut interest rates, as their currencies are very strong. Once the effects of those rate cuts are absorbed by the currencies, those countries stock markets might be nice investment opportunities, either through targeted mutual funds or ETFs.

I could not disagree more strongly with jg. It’s one thing to be on the sidelines; it’s an entirely different matter to jump into a highly leveraged bear fund. There has been no attempt to dry up liquidity, and the supply of equities has contracted dramatically. If you want to go short, targeting your shorts, that may be a better bet at this point if higher interest rates limit the risk to shorts/puts of private equity buyouts. But buying into a leveraged inverse fund to short an index? No way.

[HereWeGo]

Actually, some countries with fairly strong economies recently cut interest rates, as their currencies are very strong. Once the effects of those rate cuts are absorbed by the currencies, those countries stock markets might be nice investment opportunities, either through targeted mutual funds or ETFs.

I could not disagree more strongly with jg. It’s one thing to be on the sidelines; it’s an entirely different matter to jump into a highly leveraged bear fund. There has been no attempt to dry up liquidity, and the supply of equities has contracted dramatically. If you want to go short, targeting your shorts, that may be a better bet at this point if higher interest rates limit the risk to shorts/puts of private equity buyouts. But buying into a leveraged inverse fund to short an index? No way.

[HereWeGo]

It means mortgage rates go up. It also means that corporate earnings are devalued with respect to the 10 year yield, a metric sometimes used in stock valuations. Rising long term rates may also brake the recent M&A craziness somewhat.

Ultimately it gives antsy investors a chance to sell, take a breather, then realize that fixed income yields are completely abysmal. I know this feeling from personal experience, after jumping to cash two weeks ago this past Wednesday. Eventually those taking money off the table will re-invest (as will I).

FSD – This looks like a new aspect of our old friend, “the conundrum”. The 10-year is selling off, for whatever reason (global competition for fixed income investors I imagine.)

[HereWeGo]

It means mortgage rates go up. It also means that corporate earnings are devalued with respect to the 10 year yield, a metric sometimes used in stock valuations. Rising long term rates may also brake the recent M&A craziness somewhat.

Ultimately it gives antsy investors a chance to sell, take a breather, then realize that fixed income yields are completely abysmal. I know this feeling from personal experience, after jumping to cash two weeks ago this past Wednesday. Eventually those taking money off the table will re-invest (as will I).

FSD – This looks like a new aspect of our old friend, “the conundrum”. The 10-year is selling off, for whatever reason (global competition for fixed income investors I imagine.)

[HereWeGo]

Chris-

Is the next “buying opportunity” this Friday morning or next Friday morning (Thurs COB for fund buyers)?

[HereWeGo]

Chris-

Is the next “buying opportunity” this Friday morning or next Friday morning (Thurs COB for fund buyers)?

[HereWeGo]

Either the new homes offered by the developers will come down in price, OR there will be more distressed sellers there and maybe they will come to reality and try to undercut the developers.

Price war? Can the current occupents/owners afford it?

[HereWeGo]

Either the new homes offered by the developers will come down in price, OR there will be more distressed sellers there and maybe they will come to reality and try to undercut the developers.

Price war? Can the current occupents/owners afford it?

[HereWeGo]

Or thereabouts.

[HereWeGo]

Or thereabouts.

[HereWeGo]

So much for that little trick.
link

[HereWeGo]

So much for that little trick.
link

[HereWeGo]

That eco-group stuff seems like a convenient red herring.

[HereWeGo]

That eco-group stuff seems like a convenient red herring.

[HereWeGo]

The bond markets are slowly turning against the opinion that we will see rate cuts this year.

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