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Mark Bern, CFA  

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  • Quick Chat #281 June 1 2015 [View instapost]
    My thought is that as int rates rise more investors will consider moving to bonds (especially high quality) for yield and lower risk vs stocks. But that's just my opinion.

    It seems like a lot of investors who would normally own balanced portfolios are shying away from bonds but might go back in if the yields were better for the diversification.
    Jun 20, 2015. 02:41 AM | 2 Likes Like |Link to Comment
  • Quick Chat #281 June 1 2015 [View instapost]
    D-inv, As bond yields rise the price drops and investors are worried that bonds will rise more, so bonds are being sold ahead of Fed rate increase; this, in turn, puts further pressure on bond prices, forcing rates higher.

    I suspect that this is all no more than a nervous reaction by traders (not investors) and will settle down over the next few months. Of course, as always, I could be wrong.
    Jun 19, 2015. 05:07 PM | 3 Likes Like |Link to Comment
  • Quick Chat #281 June 1 2015 [View instapost]
    Answer to #2: Companies generally issue more shares at lower prices to retire debt when interest rates rise too much to make the debt too expensive to roll over.

    Buy high - sell low!
    Jun 19, 2015. 05:03 PM | 3 Likes Like |Link to Comment
  • Quick Chat #281 June 1 2015 [View instapost]
    But easier for gov't to control (imagination provided by political leadership here) so mergers will probably go through. Plus, those that supported O-care are in good graces.
    Jun 16, 2015. 12:29 PM | 2 Likes Like |Link to Comment
  • Quick Chat #281 June 1 2015 [View instapost]
    No cajones no ganacias!

    And yes, I know cajones means drawers, but it seems to get used colloquially for something else.
    Jun 16, 2015. 12:26 PM | 3 Likes Like |Link to Comment
  • Quick Chat #281 June 1 2015 [View instapost]
    dapizz - Real Estate has always been a regional market, not national. Trying to make into something it is not is what the gov't and economists try to do for some reason.

    There were plenty of areas that didn't notice when housing prices were rocketing higher because local prices were trending normally (near the rate of inflation). Those same areas didn't feel the pain when prices collapsed in the hot metro areas, either.

    This guy seems to make that distinction pretty well I think; unlike the index.
    Jun 15, 2015. 03:25 PM | 4 Likes Like |Link to Comment
  • Quick Chat #281 June 1 2015 [View instapost]
    This article on real estate is an eye-opener. If anyone else is interested in real estate, owns big bank stocks or mREITs, this is a must read. Let me know what you think.

    http://bit.ly/1QqtMW0
    Jun 15, 2015. 01:18 PM | 2 Likes Like |Link to Comment
  • Quick Chat #281 June 1 2015 [View instapost]
    Not as much at current rate levels, but once rates rise it will become clear that when these bonds must be refinanced at higher rates the wheels will come off sometime in the future. That will get priced in with the rise interest rates if rates go up more that 1%. It will not be the end, just the beginning of the end, imho, for those companies with excess junk debt on the books.
    Jun 15, 2015. 10:05 AM | 3 Likes Like |Link to Comment
  • Quick Chat #281 June 1 2015 [View instapost]
    Timeline changing for me and this article. I have decided that I would like to do a multi-part piece on energy first and then include one about MEMP at the end of it. Sorry, but this will take at least another week.
    Jun 15, 2015. 10:01 AM | 3 Likes Like |Link to Comment
  • Quick Chat #281 June 1 2015 [View instapost]
    shb - The article makes a very good point. We need to be wary of such reporting activities. It may reach a point of being as ridiculous as reporting in 2000. Also, of note (but not from this article), the % of IPOs coming to market with no earnings yet is now higher than in 2000. What? No income? No problem!

    But with all the stock buy back programs running full tilt these days, the inventory of stock is dwindling and creating demand for the IPO shares. This sort of thing always seems to happen near the top.
    Jun 14, 2015. 02:36 PM | 3 Likes Like |Link to Comment
  • Quick Chat #281 June 1 2015 [View instapost]
    I suspect that Simon Hunt owns a lot of gold. Maybe a little emotional bias in his analysis?
    Jun 14, 2015. 11:47 AM | 3 Likes Like |Link to Comment
  • Quick Chat #281 June 1 2015 [View instapost]
    Maya - You would need to downsize somewhat!
    Jun 13, 2015. 01:26 PM | 4 Likes Like |Link to Comment
  • Quick Chat #281 June 1 2015 [View instapost]
    ungawah - I have the same concerns. I am also worried that eventually, probably years down the road, the debt problems gets so bad that the gov't decides to start taxing savings and non-durable assets (think stocks, bonds, collectibles, etc.).
    Jun 13, 2015. 01:24 PM | 2 Likes Like |Link to Comment
  • Quick Chat #281 June 1 2015 [View instapost]
    The rent per unit is $170 US for 30 sq ft (not 35). I figured that I could rent my basement out for about $6800 a month if I lived in Hong Kong (allowing for hallways and a bathroom to share!
    Jun 12, 2015. 11:13 PM | 4 Likes Like |Link to Comment
  • Quick Chat #281 June 1 2015 [View instapost]
    This is totally off the wall but I find it disturbing. 35 sq ft apartments renting in Hong Kong; some even smaller. They have a real problem!

    http://bit.ly/1IAw8Qu
    Jun 12, 2015. 07:53 PM | 4 Likes Like |Link to Comment
COMMENTS STATS
5,258 Comments
13,762 Likes