Welcome to Capital Account. More than $100 billion of U.S. corporate-bonds were issued in September, the third time issuance has crossed that monthly threshold since 1995, according to data provider Dealogic. Is investor appetite now driven by a “reach for yield” in this low-rate environment? As investors stretch out further and further in search of the holy grail of yields, do they risk falling off the cliff? We talk to Peter Tchir, founder of TF Market Advisors, about where the chase for yield is leading.
Plus, RBS managers took part in LIBOR manipulation, according to a Bloomberg report. There is outrage over private banks manipulating interest rates, but where are the headlines about the public-private consortium that controls 35% of the long-term Treasury market? This consortium is the Federal Reserve and its open market committee of course. We talk to Peter Tchir about Treasury market distortion.
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This kind of thing is a big area for me personally.
I just moved my “untouchable” 401A into the highly conservative (bond heavy) fund.
Said fund actually GAINED during the Nov. 2008 US market crash, so in essence, it is
the “safest” place. An overall big time crash will hit this too, but these events appear
to be happening in time frames where most of us “awake folks” actually perceive such
events as being slow at times. HOPEFULLY, the Stock Market will sustain it’s main drop
in a manner that will allow it to nearly “bottom out” before the bonds suffer. Then switch
back over to the Stock Market, and wait for it to go back up. Slim chance, but it’s all I got!
The market may never come back under the $ dollar system, but if these stock certificates
hold “ANY VALUE WHATSOEVER” then perhaps I can revalue them in FreeGold or a new currency.
THEN CASH OUT lol
PS: That Lauren Lyster seems _relatively_ smart for such a looker!
Investors should avoid the bonds because they are made out of nothing so their values are going down. Gold and silver are the way to protect your purchasing power since they have a limited amount of supply.