GOLD 0.51% $1,391.7 gold futures

“Much more insightful than shoot-from-the-hip with dreamed up...

  1. 13,021 Posts.
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    “Much more insightful than shoot-from-the-hip with dreamed up rubbish to support your bias. “

    Mate I don’t suffer clowns with aggressive overtones - I’m guessing your relatively new to investing and if you are a professional, six months part time experience won’t get you far

    The bond market is a lot more than just USA debt/ treasuries -

    the program has been pretty simple- central banks have targeted buy their own debt to bring down rates to stimulate borrowings and risk taking to get the velocity of money going following a crazier in2007- as a result
    Of their actions they have successfully brought down their own rates and forced natural buyers further and further out the risk curve - as these people move in search of yield they buy more risk and rates across the entire spectrum have collapsed- In Some circumstances central banks have even targeted corporate and higher risk bonds and rates for everything have fallen - high risk bonds are now very low

    Some equities are trading at mega multiples- they don’t usually do that if there was a reasonable return on cash - but like all things they go too far in a direction

    Some Central banks like fed own huge swags of their own bonds- this for example
    Keeps their government rate down and allows them to borrow again at lower rates to repay older higher rate debts- same as corporates buying back long dated bonds and replacing at lower rates- unfortunately the USA isn’t really doing that at present but borrowing even more- I think trump borrowed and spent more this month than in the entire 12 month prior

    The bond market is huge and currently a lot of bonds are negative- the consequence of this is for them to go even more extreme and buy equities or any other asset for a yield - well some anyway

    The boj buy leveraged etf and trades them distorting markets - the market would. It be at these levels if it wasn’t for central bank actions

    Negative rates have gone too far- it distorts asset prices in the hope of keeping prices high and forces ppl to punt

    As I tried discuss up above before your amateur hour comebacks - even with the lowest rates in history banks provisions are increasing- so they are all slashing again

    If they reflate the curve, gold may suffer short term but then a recession will come as rising rates won’t be good for debt holders- banks are already seeing problems now at low rates- reflate them and see what happens - look
    At what happened to gold when rates deflated in 0809 I think

    But that’s for your spat- see you on the screens

    If you think the bond market is just USA treasuries you have no idea

    I’ve traded gold and equities well before 1000- I’ll move both ways-

    In reality- if you bought aud gold in 2007 - up downs but if you didn’t sell your up- it’s totally recovered and actually 2232 on Friday night
 
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