SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Waiting for the big Kahuna

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Tom Trader who wrote (3530)7/31/1997 6:35:00 PM
From: bobby beara   of 94695
 
Tom these could be some of the reasons bond rates are so high with zero inflation:

1. Debt in the U.S. has reach 220% of GDP, was 190% in 29' previous max.

2. In 20's US was worlds largest creditor, now world's largest debtor.

3. Total American debt = value of private real estate + stock equities

4. First time in history capitalization of stock market = GDP

5. I went in to my bank today, big banner sign 100% CAR LOANS. I have also heard of some 100% HOUSE LOANS, as long as the giving away the farm maybe I should take-em up on it -g-

Don't Bonds run pretty much in concert with stocks? If you were looking for an inverse relationship to stocks you would have to look at commodities - GOLD!

you said:
Markets take time to achieve proper valuation--just as the stock market is over-valued by most definitions, may be the bonds are under-valued.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext