Skip to comments.Bond ETFs jump as Fed wades into the market
Posted on 05/12/2020 7:40:51 PM PDT by sockmonkey
Bonds catch a bid on a day stocks are stuck in the mud.
Bond exchange-traded funds roared higher Tuesday, the first day the Federal Reserve stepped into the market to help keep credit flowing in the aftermath of the coronavirus-induced March market shock.
(Excerpt) Read more at marketwatch.com ...
The Fed begins buying $750 billion in corporate bonds.
What could possibly go wrong?
Wouldnt it be easier if we just nationalized all industries? Then the Fed wouldn’t have to worry about stocks or corporate bonds.
And as an added bonus, it would make Bernie Sanders happy. He has been down in the dumps lately.
One no longer needs financial shrewdness to invest. One needs only do what the Fed does. Buy when the Fed buys, sell when the Fed sells. Why would you do otherwise?
Down ~475 today. Up ~500 tomorrow. What are the true factors in the market, anymore? I have no clue.
“What are the true factors in the market, anymore? “
Irrationality and Intervention.
That’s all that’s left of fundamentals.
And it’s probably only because the short term is so dire.
Of course we could hope that 100s, perhaps even thousands of companies would not go under completely...feeding the death spiral of deflation...but that would not be a realistic outlook.
Personally, I would let it all burn to the ground, and look for those green shoots in the aftermath. But I don’t get a vote.
What is "the market?"
People have been doing that ever since “the Greenspan Put” in 1987. It will work until it doesn’t, just like every other guaranteed investment strategy.
“Wouldnt it be easier if we just nationalized all industries? “
And that logically follows bond purchases how, exactly?
“What are the true factors in the market, anymore? I have no clue.”
In the era of algorithms and HFT, high frequency trading, humans have no clue and maybe no place anymore.
Well we’re basically get everything from China already, why the heck not?
I agree! We need Socialism in this country ("free" healthcare, housing, food, etc.) And we should nationalize all industries too.
We can call it.....hmmmm ...how about Social Nationalism? Nope, sounds too much like "Social Media." Letseeee .hmmmmm. I got it!
We'll call it - National Socialism!
There's a reason this screenshot of Jim Cramer's program became an international viral meme.
> And that logically follows bond purchases how, exactly? <
I doesnt. Im just funnin around.
Knowing in advance when these various maneuvers are going to take place and buying or shorting accordingly. Think politicians.
You are correct.
Although...call me a purist, but the Fed should not be picking winners and losers. Although, lets not kid ourselves—that is what they have been doing to more than a century.
As an example, consider Woody Guthries guitar. Youd think it would be easier to just write Nazis. I wonder if anyone ever asked him that.
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