Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Hitting Bonds Where It Hurts - coming economic rebound will end the credit rally
Forbes ^ | 24 September 2009 | Matthew Craft

Posted on 09/26/2009 3:37:11 PM PDT by underthestreetlite

A rapid rebound in credit markets this year has lured Americans into putting more of their savings into bond funds, which has helped push prices higher and bring in more cash. High-yield corporate bonds have jumped nearly 49% this year. If investors expect a repeat performance, they're in for an unhappy surprise, said Ashish Shah, Barclays co-head of global credit strategy. "There's money coming in from investors looking for the next 49% to happen, and it so obviously isn't going to happen," Shah said.

The problem for bond buyers is actually a good thing: the start of robust economic growth

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy
KEYWORDS: bonds; market; yields
Navigation: use the links below to view more comments.
first 1-2021-37 next last

1 posted on 09/26/2009 3:37:12 PM PDT by underthestreetlite
[ Post Reply | Private Reply | View Replies]

To: underthestreetlite

No, Mister Bond, I expect you to die!


2 posted on 09/26/2009 3:39:09 PM PDT by Jagman (They comport, We deride!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: underthestreetlite

I’m heavy in bonds but am ready to jump. Just where is a bit of a dilemma.


3 posted on 09/26/2009 3:40:00 PM PDT by eyedigress
[ Post Reply | Private Reply | To 1 | View Replies]

To: underthestreetlite

Barry?


4 posted on 09/26/2009 3:40:06 PM PDT by Johnstone
[ Post Reply | Private Reply | To 1 | View Replies]

To: underthestreetlite

People who bought good bonds at low prices will continue to receive high interest on their money. Isn’t that good enough for them?


5 posted on 09/26/2009 3:43:19 PM PDT by proxy_user
[ Post Reply | Private Reply | To 1 | View Replies]

To: underthestreetlite

Ashish Shah????

Scary.


6 posted on 09/26/2009 3:44:26 PM PDT by Freddd
[ Post Reply | Private Reply | To 1 | View Replies]

To: eyedigress
I'm 80/20 bonds/stocks. The dead cat bounce is about over (three straight down days in S&P 500) and the cat will settle at S&P 500 of 750. YMMV.

Some restrictions apply. Void where prohibited. No warranty expressed or implied.

7 posted on 09/26/2009 3:47:44 PM PDT by 50mm (AARP is a steaming pile)
[ Post Reply | Private Reply | To 3 | View Replies]

To: 50mm

Yikes! I am 70/30 stocks, since bonds are hovering around 0%.

I have recouped all my losses from last year and am starting to gain again.


8 posted on 09/26/2009 3:51:01 PM PDT by freedumb2003 (Communism comes to America: 1/20/2009. Keep your powder dry, folks. Sic semper tyrannis)
[ Post Reply | Private Reply | To 7 | View Replies]

To: eyedigress
I’m heavy in bonds but am ready to jump. Just where is a bit of a dilemma.

Dude, are you kidding?

Silver. Rare Earths. Water infrastructure.

Or, if you must remain wrapped in fake paper like a financial mummy, BRIC is still outperforming everything American.

9 posted on 09/26/2009 3:52:07 PM PDT by The Comedian (Evil can only succeed if good men don't point at it and laugh.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: 50mm

I don’t see the economic rebound as ascribed in the title. The nations wealth has been spent. The guys in charge want to mandate even more taxation with no way to justify it. As sim city might say, Obama I can’t afford this anymore.


10 posted on 09/26/2009 3:56:55 PM PDT by eyedigress
[ Post Reply | Private Reply | To 7 | View Replies]

To: freedumb2003

Look at history. Whenever the S&P 500 fails to reach reasonable valuations during a bear market downturn, the subsequent rally is short-lived and followed by a plunge to a level where valuations are reasonable. I’m not looking for a good return in bonds, I’m protecting principal for what I expect will be a dive to the basement in stocks. I’d buy gold, but it too is currently overvalued.


11 posted on 09/26/2009 3:57:21 PM PDT by 50mm (AARP is a steaming pile)
[ Post Reply | Private Reply | To 8 | View Replies]

To: eyedigress

Gold and Silver commodities?


12 posted on 09/26/2009 3:57:45 PM PDT by struggle ((The struggle continues))
[ Post Reply | Private Reply | To 3 | View Replies]

To: freedumb2003

The DJIA is going down to about 3800 next year.


13 posted on 09/26/2009 3:59:26 PM PDT by Signalman
[ Post Reply | Private Reply | To 8 | View Replies]

To: eyedigress

Not to mention the coming credit card debt bubble burst. I think the author is overly optimistic.


14 posted on 09/26/2009 4:00:27 PM PDT by 50mm (AARP is a steaming pile)
[ Post Reply | Private Reply | To 10 | View Replies]

To: The Comedian

I’m not kidding. I have a gold hedge but after losing 1/3 of my money I got somewhat skiddish on the stocks.


15 posted on 09/26/2009 4:02:44 PM PDT by eyedigress
[ Post Reply | Private Reply | To 9 | View Replies]

To: eyedigress
I have a gold hedge but after losing 1/3 of my money I got somewhat skiddish on the stocks.

Um, you lost 1/3rd on your gold hedge, or on your stock portfolio?

I'll say it again:

Silver. Rare Earths. Water infrastructure. And oil straddle options if you have lots of cahjones and day trader time.


Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

16 posted on 09/26/2009 4:06:54 PM PDT by The Comedian (Evil can only succeed if good men don't point at it and laugh.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: Bobkk47

I doubt it.

Things are bad but not that bad.

If you honestly believe that, you should be 100% in Gold Bullion.


17 posted on 09/26/2009 4:12:18 PM PDT by freedumb2003 (Communism comes to America: 1/20/2009. Keep your powder dry, folks. Sic semper tyrannis)
[ Post Reply | Private Reply | To 13 | View Replies]

To: The Comedian

Stocks. The Gold Hedge actually began in 2004. The 1/3 loss is stocks only. The gold was about 20% of portfolio but is up substantially. Alot of it evens out. I still feel as though I have lost by not taking action sooner.


18 posted on 09/26/2009 4:14:12 PM PDT by eyedigress
[ Post Reply | Private Reply | To 16 | View Replies]

To: The Comedian
Silver.

Rare Earths.

Water infrastructure.

Invest in Rock 'n Roll, baby!

19 posted on 09/26/2009 4:17:09 PM PDT by freedumb2003 (Communism comes to America: 1/20/2009. Keep your powder dry, folks. Sic semper tyrannis)
[ Post Reply | Private Reply | To 9 | View Replies]

To: The Comedian
OOpps -- missed: BRIC is still outperforming everything American.


20 posted on 09/26/2009 4:19:19 PM PDT by freedumb2003 (Communism comes to America: 1/20/2009. Keep your powder dry, folks. Sic semper tyrannis)
[ Post Reply | Private Reply | To 9 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-37 next last

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson