His bond beaten completely out of control? Why do people buy bonds with negative interest rates? Of course only if one believes that that interest is even more negative, otherwise it delivers guaranteed jewellers rouge loss. Bonds worth several thousands of billions have already now a negative return. Is a little loss better than a big loss later? We really believe jewellers rouge that there is a chance of a 5 or 10-year deflationary depression? Or that the Earth is hit by a major, jewellers rouge devastating asteroid? Or that later influenced the Earth's magnetic field by fierce solar storms, making the total climate suddenly changes? Or is it finally time for canned vegetables and bottled water? Kanniewaarzijn. The world still running as usual? The world economic growth falters occasionally, jewellers rouge but the long term outlook for the global demand for many products remain outstanding? More and more groundbreaking inventions in technology and medical field. The S & P 500 index is now even a third higher than the record of 2007 and the S & P 400 Mid-Cap index has risen in the last 5 years up to 270%. So it seems really, that 'risky' equity, often with dividends to mouth-watering, almost anywhere, be aware of oblivious. Moreover, long-term holders of bonds will like pension funds and insurance companies, may sometimes wonder whether they should not change their investment policy. A long-term negative jewellers rouge interest rate environment jewellers rouge could exert an incredible performance pressure on the largest pecuniary institutions, which it later with food could be thrown. Because that occurs when the stresses become too high, just think of the former student. Despite all the super-stimulative monetary jewellers rouge measures do these 'unexpected' deflation now introduced and the small group of unelected central bankers do everything possible behind closed doors, to convince the world of the existence of Mickey Mouse, through 'monetary inflation' . The markets should be carried away by an imaginary reality, so that one does not particularly, how rickety the heavily battered world financial system after the credit crisis, and it is, how serious the consequences could be a deflationary trend. The world is indeed saddled with the most gigantic debt as a percentage of the economy, of all times, which would be even heavier! Therefore, one must above all keep the faith in the omnipotence of central banks, which have found a way to dramatically increase their balance without inflation and to increase the world debt without interest rates. And it should only agree with all the shame about "too much" debt: the debt is still together, so more debt makes the world not poorer, but debt reduction would be considerably less prosperity result.
Inverted world! Should we experience jewellers rouge a repeat of the failed paper system of John Law in France 300 years ago (the Mississippi bubble '), where money first loses its function as a store of value and savings or after payment? He was the architect of a system that the debt would go up in smoke, which of course totally entered the fog. Now again. What follows the current wizardry, is a crisis of confidence without precedent. A monetary policy that seeks not 'healthy' money is doomed to failure. A cow by the horns and fix the creaking system, and through debt restructuring, is far preferable to a fatal imbalance of the system later. Kanniewaarzijn. That bond is not in his head. Now it is time to abandon all caution and take just as many risks as possible, right? But hesitate to buy the riskiest junk, otherwise earn nothing. Quality still does not matter anymore, because Central Banks guarantee eternal land of plenty. Or the bond would have a sixth sense that warns of the coming disaster, jewellers rouge like a dog that starts barking jewellers rouge just before an earthquake? jewellers rouge Right! The bond market has, in the past, always the most reliable emergency warning system proved ever. Then suddenly the sun shines no more, what the Central Banks say or do. What an unprecedented time is coming at us!
Whatever you do, sir Schmull, already proclaims times, jewellers rouge namely the right to interpret the bond market, now also appears to penetrate mainstream media. The first cracks are - now also for the general jewellers rouge public - visible. http://fd.nl/beurs/1092991/sp-chef-waarschuwt-voor-staatsobligaties Regards, English Caesar Reply Delete
DUTCHCAESAR: My experience is that the signal quality of the bond market are far more reliable than those of
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