Silicon Investor (SI) -- The First Internet Community

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.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: jtech who wrote (39671)	5/15/2001 10:19:59 PM
From: Peace	Read Replies (1) \| Respond to of 50167

The bond has a long maturity and all these cuts the fed has done is going to increase the economic growth down the road which will translate in to more inflation (in a relative sense) so the rate has to go up. Bottom line - the bond market (yield curve) has been signalling for a while now that there is no recession in sight and there is potential inflationary threat down the road which will be caused by excessive growth. <g>

To: jtech who wrote (39671)	5/16/2001 4:46:09 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

Higher yields lower prices as inflationary fears play in, normal for a market that has to take off, please re-visit my posts on 22nd March and 4th April I was insisting on selling bonds and getting into equity, now as FED cuts hard the investors in bonds long money feel that inflation will come back roaring, remember that stagflation argument, and that is not the end of the debate this gyrations may continue all the time for next few months until money walks or show me the money materialises. This is an upward sloping yield curve a normal looking curve where short money is lower and medium a little higher and the deep end right up there. I would expect to build my bond positions back to 35% levels; I think fwiw that inflationary fears are overdriven. I think 5.90% yield on long bond is a good hedge if market will fall flight of capital will help bonds and if market takes off bonds will be any way fall as their would be non-existent inflation. A good hedge here a long bond in next few days say by 5.98 or on the way down below 5.84..