Defrocked,
I am very happy to know that you liked my apology this morning. Never again will I taunt your bad market calls, I promise. I hope that makes us friends now. Given that this is something like the fifth time you have promised to ignore my posts, I never doubted that reconciliation was on the way.
I agree that I should not trade. If I may be bold enough to offer a friendly advice in return, and please feel free to ignore it, perhaps you will be happier if you went back to academia. Trading is making you a bitter person, IMHO.
Now, I have a few questions for you (I have broken them down substantially into simple parts for your benefit):
1. If the Fed tightens, aren't yields going to go up?
2. Don't bond prices fall when yields go up?
3. If the odds for tightening by the Fed has indeed increased, doesn't that make 1, and hence 2, more likely?
4. Given that, why would any professional buy bonds here (well, apart from their natural inclination to underperform the market index via trading)?
5. If nobody was selling when the DOW was at 11000+, why would they be selling now? Isn't buying low and selling high the way to make money? Or is this another one of the examples of professional traders panicking?
-BGR. |
