Posted on 05/03/2020 3:40:10 PM PDT by MeneMeneTekelUpharsin
DOW futures down -305 at the time this was posted.
(Excerpt) Read more at cnn.com ...
Well...
Trump has been at Camp David...
” Bonds paying 1 or 2% just won’t cut it. Now, if bonds were paying maybe 6%”
I am not familiar with bonds. If the interest rate goes up will the new Bond interest go up?
I’ve gone to a more aggressive (buying) posture since the lockdown began. Looking past election before doing anything different. If there’s one thing the DOW does over time, is go up. And this from someone who’s been in it since it was in the 700’s back in the 70’s.
Word is Buffet dumped all his airline stocks last week.
Fail to plan,Plan to fail.
In the weeds, time to re-eval ?
Need a sounding board, try Yahoo business or Bloomberg,there great doom and gloomers
> If the interest rate goes up will the new Bond interest go up? <
Usually but not always yes. And existing lower-interest rate bonds will drop in value.
But with the economy so fragile now, it will be a long time before the Fed starts to raise interest rates again. I’m guessing that bond rates are going to stay low for maybe a year, or longer.
Out of curiosity I just looked up Vanguard’s Total Bond Market Index Fund. That fund is representative of the entire US bond market. It is yielding a paltry 1.63%.
The market can remain irrational longer than you (or anyone) can remain solvent.
When things seem dire (as in the beginning of the pandemic scare) Wall Street tanked, but now that information is getting out to the common person, America is going from feeling OK to being pissed off the governors are still acting like jerks.
Obviously a reaction to Biden’s scandal. s/
Yes, he’s sounding very pessimistic.
Market craps in the pants every time Trump imposes more tariffs on Chicoms in defense of American jobs & balanced trade.
Because in the short term it can cause dislocations in business activity. Market doe snot care about long term interest of United States of America.
Good.
China needs to pay.
I spoke with someone very high up in a mid-sized luxury hotel chain. You know they all have restaurants and bars in them. They have near zero occupancy of course, except that some are giving rooms to hospital workers so they don’t have to go home and risk taking the virus from work to their families. She said she believes 75% of the restaurants in the big cities won’t be able to re-open. That’s probably 10 million jobs that won’t be coming back anytime soon. That’s going to impact their suppliers. That’s going to impact landlords. That’s going to impact banks.
And it’s just a microcosm. Unemployed service industry people can’t pay rent. That impacts landlords. That impacts banks. You get the picture.
CA Gov Newsome is talking about $30 billion in lost tax revenues to the state. I think it will be more than that. He wants a “federal” bailout. Federal bailout means taxpayer bailout, from people who aren’t making money to pay taxes. He isn’t talking about trimming the state’s budget which, per capita, is apx twice that of Texas and Florida and he wants Texans and Floridians to bail him out. As does IL gov Pritzker. And Cuomo. The three most profligate spenders won’t change their modus operandi even when their own citizens are suffering by it and expect all the other fiscally prudent state residents to bail them out.
Buffet’s timing was horrible, causing tens of Billion dollar loss to his stock.
Why are the democrap run states always in more trouble?
He booked $50 billion in losses. Some of that is just accounting maneuvers; putting reserves aside for anticipated losses. But some of it is real. All his major cash generating enterprises are virtually shuttered, and his railroads are running at minimal capacity.
You know the old market saying “sell in May and go away”? Looks like he front run the month by a few days.
We need to see what happens in the next week or so as the country starts to open up.
Brace For A Monday Massacre: Buffett Liquidates All Airline Holdings As Berkshire Sees Another Leg Lower
“Out of curiosity I just looked up Vanguard’s Total Bond Market Index Fund. That fund is representative of the entire US bond market. It is yielding a paltry 1.63%.”
I am sitting in Prudential Stable Value Fund at 2.37%. That was the safest investment available for my 401K. I transfer out 95% from Growth/Income fund about 4 days before the market pop.
If is was not for news links in Free Republic I would have lost a lot of money on paper. I am 5 years out from early retirement so I decided to play it safe.
Scouring the news sights...mostly liberal/leftist MSM, they are doom and gloom on the economy.
My guess, the libs are going to try their best to wreck the economy before the election...but it’s going to fail.
Not sure about rest of civilization, but here in the Northern suburbs of Houston area, folks are working to get back to normal.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.