Waiting for the big Kahuna Message Board

STOCKTALK

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 Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Liatris Spicata who wrote (14446)	2/28/1998 9:00:00 PM
From: Bonnie Bear	Read Replies (1) of 94695

Larry: if you can find a chart of a fed 30 year zero-coupon bond over the past fifteen years you'll find that you could have done as well, or better, being a bondholder, and with considerably less risk. and you'll find that the Dow and the zero-coupon chart look identical. Gosh. The whole market has been fueled by the drop in interest rates. From the sixties to 1982 when interest rates were headed up, not down, both stock and bondholder values suffered horrible long slow deaths. In addition, people are now paying a premium to get a future decline in interest rates similar to the ones we've enjoyed in the past. Without the dividend there isn't much difference between a good junk bond portfolio and a stock portfolio other than speculation, I suspect the junk bonds could get you to the same place with less risk. Brokerages would lose huge trading profits if the public knew the truth. I own JEF, the phoenix that rose from the ashes of Drexel Burnham Lambert and Milken and Jeffries junk-bond debacle, I figure it's even safer to own the premier junk-bond brokerage than junk bonds. :-)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next