Tag Archives: bonds

Why Warren Buffett’s Moves are Bewildering.

Everyone is confused – He bought a bunch of airlines at their peak, and sold them all (was the normally undaunted investor suddenly in a panic?) at the bottom.  “Fear is the most contagious disease you can imagine…” said Buffett … Continue reading

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Corporate Bonds not out of the woods yet!

We’ve watched a bit of a bear market rally in stocks, but also saw the same short term narrowing of corporate bond spreads (the difference between the yield offered by corporate bonds versus the virtually risk-free government bonds or treasuries).  … Continue reading

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The bonds that can lose your money!

I mentioned in an earlier article, published Feb. 24th, that even bonds and bond ETF’s are at risk in the current environment; primarily due to a phenomenon know as a widening of credit spreads.  This is happening in a big … Continue reading

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It’s Another Credit Crisis!

The recession (we’re undoubtedly in already) is not the worst of our woes.  It’s unlikely the FED would have taken such drastic measures because of the coronavirus or even the prospect of recession.  I’ve mentioned in previous articles that corporate … Continue reading

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Bonds (ETF’s, Mutual Funds) at Risk even in a Recession

It’s very difficult to teach young adults about how bonds work – although I believe I’ve done a pretty good job of it.  It’s even more difficult to educate adults that had an aversion to math when they were at … Continue reading

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What is the bond market telling us?

Bond traders have taken yields at very short end of the curve and mid-range (2 to 10 year maturities) a bit higher as confidence in the economy has temporarily strengthened.  However as I’ve mentioned in prior articles, we may already … Continue reading

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Why are mortgage rates REALLY falling? Will this increase home prices?

A recent article posted on CBC Business News was entitled “Why worries about the coronavirus are pushing mortgage rates down.” Below is the explanation: Fixed-rate loans are highly influenced by bond yields, because a mortgage lender makes money on the spread between … Continue reading

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When Consumer is Happy, Markets are High Risk

Consumer sentiment is usually considered an economic leading indicator.  When confidence is at rock bottom levels, it’s a sign that the economy and stocks markets are heading lower.  This isn’t true.  I’ve published for years that consumer confidence is one … Continue reading

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Hold on to your bond ETF’s: It’s a RECESSION!

There are a enough indicators to suggest we’re already ‘in’ a recession.  But, you say, GDP stats that have been published remain positive.  As I learned decades ago, historical data doesn’t tell us much – its published with a delay … Continue reading

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Who predicted these oil prices? I’ll tell you.

The following prescient quote is from February 2014: The economies of China and India have slowed, and the U.S. is trending towards energy self-sufficiency thanks to production growth nobody envisioned back then.  The question today is why oil prices haven’t … Continue reading

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