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Strategies & Market Trends : Win Lose or Draw : Be A Steve, Make A Call -- Ignore unavailable to you. Want to Upgrade?

To: Win-Lose-Draw who wrote (7011)	3/17/2003 7:07:38 PM
From: t2	Read Replies (1) \| Respond to of 11447

don't forget that bond funds need very large inflows simply to keep status quo due to ever-increasing federal, state, municipal government, GSE and corporate debt levels. the last number i saw for bond inflows was on the order of $5B for a one month period: that isn't even enough to cover the increase in federal debt, never mind all the other domestic debt. That is exactly why some are calling it a BUBBLE. Only deflation believers think bonds are good right now. People are afraid of stocks and tend to go to what they perceive as safety. Ron Insana (cnbc) and some others are pointing out how risky bonds can be at this point. Interest rates since October have been going down...and now inflation is higher than the short term interest rates. The worst investment is always whatever is a bubble that can collapse. Other areas of investment will be prefered. ..btw-last night I noticed strong gains in the bond market only to see a big selloff today...mirror image of what happened with the SnP versus the futures last night.