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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?


To: No Mo Mo who wrote (5501)8/19/2010 9:07:03 PM
From: JimisJim  Respond to of 34328
 
For the life of me, I do not understand why anyone would buy 10-yr. tsy paper right now... or maybe I should say that the only reason I can think of means that there is little hope of any meaningful economic recovery any time soon.

Remember that the bond market is orders of magnitude larger than the stock market.

And we see volume in stocks dropping all summer while bonds are selling like hot cakes.

The scary thing is that if we assume that bonds are in a bubble and that all bubbles burst eventually, the result of the bond market imploding would be way more catastrophic than anything we've ever seen before.

So it scares me that so many are willing to tie up their money in a 10-yr bond that yields about 2%.

Jim