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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Chip McVickar who wrote (7284)1/5/2006 11:01:43 AM
From: macavity  Read Replies (1) | Respond to of 33421
 
Happy New Year, Chip.

Not sure about bond investing but I feel long-term yields are more likely to go down than up. I don't care if they issue more 30Y or not.

-macavity



To: Chip McVickar who wrote (7284)1/5/2006 12:46:50 PM
From: Edscharp  Read Replies (3) | Respond to of 33421
 
Chip,

Most of my adult life I've traded and invested in stocks, but never bonds.

Recently I've become quite interested in purchasing bonds. What with inflation, rising energy costs, deficit spending, the middle east conflicts, terrorist threats, rising gold prices and the bond price inversion. Also, of considerable importance is the increasing liklihood that the Democrats will win the next election and the possibility that they will bring with them new governmental spending, social programs, and increased taxation.

For many of us who are turning increasingly pessimistic It occurs to me that a hedge for these events might be in order.

I was wondering if any posters here could recommend a link or a book which explains bond purchasing in some detail, and also covers what one might expect of bonds during bear markets, bull markets, inflation, deflation, rising and falling interest rates, corporate securities vs government securities; and pretty much all the things that one would want to know about fixed income securities.

Thanks & best regards



To: Chip McVickar who wrote (7284)1/5/2006 7:08:25 PM
From: robert b furman  Read Replies (2) | Respond to of 33421
 
OK Chip,

Now you've started something I know little of - and John has taught me the little I know.GG

With 2's inverted over 5's and almost on 10's - and the Fed begins to lower rates - won't that run up the price of the 2 year - thusly its demand and the recent/margianl inversion?

Bob

P.S. Great Idea.

Now please teach us what is truth John.<smile>

Bob



To: Chip McVickar who wrote (7284)2/10/2006 12:32:30 PM
From: John Pitera  Read Replies (1) | Respond to of 33421
 
Hi Chip, I've spent some time out of town on a couple of trips but your idea sounds like a good one.

I've been researching bond duration recently and John C Hull's book: Options,Futures and Other Derivatives coveys the concept really well.

Let's establish several basics before I get into duration.

How has the new year been treating you?

my best,

John