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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 396.31-0.6%Dec 31 4:00 PM EST
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To: TobagoJack who wrote (168318)2/9/2021 8:18:21 AM
From: sense  Read Replies (1) of 218884
 
"what really matters is the way that real yields, taking account of inflation, have moved. And they have barely moved at all."

LOL! Buy those bonds... and just hold them... no matter what inflation does to their value... ?

Makes exactly the same amount of sense as WallStreetBets "diamond hands" argument ?

Buy high, sell low... a well worn practice on the street... being tried once again, now... only this time used as a policy tool ?

So, I'd argue instead that what really matters... when you see the way that real yields, taking account of inflation, have barely moved at all... is what the bond investors decide to do about losing more and more of the value of their investment to a higher rate of inflation over time...

That won't show up in "real yields" in the short term... but, only when the buyers quit buying ?

When will that happen ? Depends on who the buyers are... and what happens to them next... if they do quit buying ?

Otherwise... it seems the argument makes the same amount of sense when "real yields still at 1%, taking account of inflation at 2.25% haven't changed"... means inflation running at 17.25%... with yields at 16%... will show things are essentially no different than they are today ? Or, does that require inflation at 17.25%... with the yields still being held at 1% ?

/s
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