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Treasurys slammed; 10-year yield closes 2013 at new high

Comments (14)
  • Grant Dossetto
    , contributor
    Comments (134) | Send Message
     
    What's the difference between the 10 year treasury rate and the dividend yield on the S&P right now? I am guessing that bond returns look awfully attractive now.
    31 Dec 2013, 05:01 PM Reply Like
  • sl100
    , contributor
    Comments (110) | Send Message
     
    But the Mkt is still going up wondering where all the talk about Stocks producing better yields than 10Y treasury. Sheep are been herded into stocks by wealth management groups. With this kind of run in stocks good time to exit(up180% in 5 years). Note the corp debt is gone from $6 Trillion to $12.5 Trillion in 5 years, biggest rise in Corp debt in such shot time. Great time to exit stocks and bonds and go cash. If one watches the tape the big caps are been manipulated to only go up so the index are kept up. some of the big one mkt stocks are below :

     

    APPL 510B -- declining sales and margins will sure get bad next year.
    GOOG - 375B -- PE=35, no growth but been attacked on the adv from all ends so should see a decline next here. up nearly 60% last year insane valutions for big cap.
    XOM - 460B -- PE15 expected growth rate 2-4%, Last revenue declines 14% last. Isued debt to buy back stock but at these they will slowdown, not div play either 2.2% div treasy 3.03%. Has many issues with declining oil prices and declining replacement reserves.

     

    Many more like these but general public needs to be aware move out of equities and bonds into cash. Including 401K better to move into Money markets account.
    31 Dec 2013, 05:05 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (1874) | Send Message
     
    Not just a like to the comment, I think he's right. I am very close to exiting all my MF's and sit with my Au and Ag
    Capt. Brian
    The Lost Navigator
    1 Jan, 11:01 AM Reply Like
  • The_Hammer
    , contributor
    Comments (3775) | Send Message
     
    alot of pain coming in bond land when double digit inflation arrives. many still think new low rates in store. tbtf banks and fed balance sheets must be starting to feel some of the interest rate pain.
    31 Dec 2013, 07:32 PM Reply Like
  • omarbradley
    , contributor
    Comments (966) | Send Message
     
    double digit inflation from what? gold? silver? do love the headline. typical seeking alpha lunatic fringe. 3 percent and its panic time? maybe in financials. that is one hell of spread.
    31 Dec 2013, 08:06 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (1874) | Send Message
     
    To both of the commenters Hammer and Omar:
    I feel we are already in a controlled increase in inflation and deflation worries are there but not real strong. I think the printing of money, buying our own debt, and a few other items will see the US$ purchasing power continue its slow decline. Again, just go look at the reality of the long term chart figuring the US$. http://bit.ly/oWmHa1 Now I understand, a lot of folks don't like admitting reality, but there it is. Read it and weep, and change your comments to match reality. I wish I was wrong, much easier to go with the flow and eat the pabulum they are feeding us. I'm still in the bull market on Au and Ag. Treading in stocks ONLY because the geniuses who control my money for now say so. I have the last word and it may be sell. (and soon)Capt. BrianThe Lost Navigator
    1 Jan, 11:07 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (7773) | Send Message
     
    At this rate of steepening, bank earnings in 2014 may be TRIPLE bank earnings in 2010.

     

    Wow!
    31 Dec 2013, 08:58 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (10894) | Send Message
     
    Imagine what the rate would be if they tapered further. They can't even absorb the slipping 10 year Treasury Bond due to lack of buying interest. Without QE to mop up excess supply they'd be sunk.
    31 Dec 2013, 10:24 PM Reply Like
  • Peregrinus
    , contributor
    Comments (113) | Send Message
     
    Moon:
    I'm glad someone is paying attention. It will soon become apparent to some members of congress that it will no longer be possible to service the debt within additional dollar printing. The resulting reaction could cause a global rush to dump the dollar and we will see inflation rates return to their good old (realistic) levels.
    31 Dec 2013, 11:58 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (10894) | Send Message
     
    Many people forgot that no one thought the Federal Reserve would lose control before they did when Jimmy Carter was in power. It wasn't Jimmy Carter alone who caused this hyper-inflation, it was an oil squeeze which solidified the US Treasury market collapse that was already in motion. Back then we could internally fund our national debt. Today, we will probably need the buy in of foreigners which mean selling our economy down the river for quite a long time.
    1 Jan, 11:49 AM Reply Like
  • al roman
    , contributor
    Comments (4158) | Send Message
     
    It's just "the morning after",We'll see.I think that has always been the Chairman's concern ,Inflation.Peregrinus & Moon you are looking further out at least the weather should be better as taper advances and effect can be analyzed.Happy new year.
    1 Jan, 03:25 AM Reply Like
  • al roman
    , contributor
    Comments (4158) | Send Message
     
    Treasuries where looked at as security and trust ,had deep meaning to life and soul,and have saved the day for many ascendant.
    1 Jan, 04:08 AM Reply Like
  • Peregrinus
    , contributor
    Comments (113) | Send Message
     
    Al:
    I'm not sure what you are saying. If its a version of "don't worry be happy" you should keep in mind that no country has ever been able to pay its bills by printing money without unleashing the dogs of inflation. Large moves in interest rates are like sea changes: the moves are unrelenting and largely uncontrollable. Presently even a small (further) increase in interest rates will result in a government crisis.
    Moon:
    Well said.
    1 Jan, 11:35 PM Reply Like
  • al roman
    , contributor
    Comments (4158) | Send Message
     
    You said it better than I.I was just reminiscing.Treasuries where held in middle class families for generation's going back into the 1900's and i have seen families find that old box of treasuries and save the day,what trust.
    2 Jan, 05:51 AM Reply Like
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