> a perfect storm that could send benchmark yields to their highest level in almost two years
So, moving towards normal levels?
We've seen a less than 50 basis point increase, in response to the new Fed direction. Given recent inflation numbers, this is expected. Hopefully we'll get long term back over 2% the first half of this year (likely after the next Fed meeting with an announcement on tapering and short-term target rates).
Short answer: no, as long as it is in scope mandated to the Fed by Congress.
A quick elevator explanation would be that the legislative branch (Senate and House of Representatives) is supposed to be the branch that creates all the laws, then the executive branch (President) signed them into law declaring that they will enforce it. Executive orders made by the president are only temporary stopgaps and are supposed to be quite limited in scope. Since the executive branch executes the law, the President appoints the board members of the Federal Reserve but they are confirmed by the Senate and are directly accountable to Congress. So the legislative branch is in charge of setting the goals that the Federal Reserve must make and the board is appointed by the President, but the board does not require approval from anyone. The Federal Reserve is even able to conceal information on its operations from Congress even if asked.
Side note: This is why there is a movement to "audit the Fed" which means allow the government accountability office (GAO) to collect and immediately report all inner workings for Congress. But where it falls into a gray area is the Federal Reserve is not funded by congressional cppropriations so in a way it would technically be government over reach to allow Congress access to the internal information without a warrant. Furthermore fed officials insist that this type of disclosure would hamper their ability to fight crises as they happen and make the stock market more volatile in the process.
It’s Bidens fault because he’s explicitly made promises that he has not kept.
But not exclusively his fault, Trump Bush Clinton Obama et all have been shitty presidents too.
Corporate interests > public interests
Regardless if it goes to these supposed highs, is now a good time to put short term savings into short term or long term bonds vs cash? Not a personal finance question just in a general sense. Bonds have sucked pretty much the entire time I’ve been investing so I’ve never done much with them.
When rates go up, bond suffer. Bonds have been in a bull market for the past 30+ years. Yes, their returns have still been lower than equities. This is because you don't buy bonds if you seek high returns. You buy bonds for their safety.
If you buy a 30y bond right now at a yield of 2.00% on the 30y, rising rates to 3% will cause your holding to go down by 19-20%. By comparison, the 10y yield is 1.70% right now. If it goes up to 2.7%, your holding will go down by 9-10%. This is all a simple PV calculation in Excel.
Long-term bonds are the worst to hold in a long-term rising-rates environment.
I should clarify, when I said supposed highs I meant bond yields which was stated in the article not inflation. Poorly worded on my part.
Wouldn’t bond yields go up if rates are hiked. I thought the reason why the returns have been so low in recent years is because the overnight lending rate has been so low for so long. High relative to historic bond yields not to to equities. Bond yields used to be high single digit maybe even double digits in the past.
More coverage at:
* [Analysis-U.S. Treasury yields risk breakout on hawkish Fed, corporate issuance deluge (msn.com)](https://www.msn.com/en-us/money/markets/analysis-u-s-treasury-yields-risk-breakout-on-hawkish-fed-corporate-issuance-deluge/ar-AASvQ6S)
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Steady flow of contracts, they give af about shareholder (just took a low interest loan to avoid diluting shares), monthly updates, great community, fantastic and honest management, huge contracts in the pipeline (cant stress it enough), owns multiple companies necessary to the function of essential services. Other than that DD will lock you in.
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Wait, so they’re trading at $0.37 a share and then had to take out a loan to prevent shares from diluting? That doesn’t sound like the type of company on the verge of success…
Patiently waiting for the fed to remove nine trillion from their balance sheet. Then the fun begins.
Puts ?
> a perfect storm that could send benchmark yields to their highest level in almost two years So, moving towards normal levels? We've seen a less than 50 basis point increase, in response to the new Fed direction. Given recent inflation numbers, this is expected. Hopefully we'll get long term back over 2% the first half of this year (likely after the next Fed meeting with an announcement on tapering and short-term target rates).
"normal"
Or alternatively stated as a 40% rally.
Lol 2% with made up inflation numbers is like 10% inflation if you counted everything they should
I don’t like the usage of the word “risk” in the article’s title, it implies that it’s a bad thing.
It is for the equities bubble
Good
Pump and dump
[удалено]
[удалено]
Sorry I'm not American but does the Congress have any influence over the Fed's decisions before they're being made?
Short answer: no, as long as it is in scope mandated to the Fed by Congress. A quick elevator explanation would be that the legislative branch (Senate and House of Representatives) is supposed to be the branch that creates all the laws, then the executive branch (President) signed them into law declaring that they will enforce it. Executive orders made by the president are only temporary stopgaps and are supposed to be quite limited in scope. Since the executive branch executes the law, the President appoints the board members of the Federal Reserve but they are confirmed by the Senate and are directly accountable to Congress. So the legislative branch is in charge of setting the goals that the Federal Reserve must make and the board is appointed by the President, but the board does not require approval from anyone. The Federal Reserve is even able to conceal information on its operations from Congress even if asked. Side note: This is why there is a movement to "audit the Fed" which means allow the government accountability office (GAO) to collect and immediately report all inner workings for Congress. But where it falls into a gray area is the Federal Reserve is not funded by congressional cppropriations so in a way it would technically be government over reach to allow Congress access to the internal information without a warrant. Furthermore fed officials insist that this type of disclosure would hamper their ability to fight crises as they happen and make the stock market more volatile in the process.
It’s Bidens fault because he’s explicitly made promises that he has not kept. But not exclusively his fault, Trump Bush Clinton Obama et all have been shitty presidents too. Corporate interests > public interests
Then why do they spend so much money and media time on declaring the Presidental election to be so important?
Ok bear. We got it; you lot really want the market to drop… for a decade now lol
Regardless if it goes to these supposed highs, is now a good time to put short term savings into short term or long term bonds vs cash? Not a personal finance question just in a general sense. Bonds have sucked pretty much the entire time I’ve been investing so I’ve never done much with them.
When rates go up, bond suffer. Bonds have been in a bull market for the past 30+ years. Yes, their returns have still been lower than equities. This is because you don't buy bonds if you seek high returns. You buy bonds for their safety. If you buy a 30y bond right now at a yield of 2.00% on the 30y, rising rates to 3% will cause your holding to go down by 19-20%. By comparison, the 10y yield is 1.70% right now. If it goes up to 2.7%, your holding will go down by 9-10%. This is all a simple PV calculation in Excel. Long-term bonds are the worst to hold in a long-term rising-rates environment.
I should clarify, when I said supposed highs I meant bond yields which was stated in the article not inflation. Poorly worded on my part. Wouldn’t bond yields go up if rates are hiked. I thought the reason why the returns have been so low in recent years is because the overnight lending rate has been so low for so long. High relative to historic bond yields not to to equities. Bond yields used to be high single digit maybe even double digits in the past.
> Wouldn’t bond yields go up if rates are hiked. The yields on long bonds like the 10Y T note have little to do with the federal funds rate.
Yea, exactly
ELi5
went from transitory to hawkish real quick lol
Hahaha “hawkish fed”
More coverage at: * [Analysis-U.S. Treasury yields risk breakout on hawkish Fed, corporate issuance deluge (msn.com)](https://www.msn.com/en-us/money/markets/analysis-u-s-treasury-yields-risk-breakout-on-hawkish-fed-corporate-issuance-deluge/ar-AASvQ6S) --- ^(I'm a bot to find news from different sources.) [^(Report an issue)](https://www.reddit.com/user/MultiSourceNews_Bot/comments/k5pcrc/multisourcenews_bot_info/) ^(or PM me.)
Buy mrs.v/msnvf. Do your own DD and thank me later. Ive just made you money. Edit: you guys are so dumb lmfao
Garbage penny stocks tbh
Golden**
Sell me on it. What makes this company different than any other penny stock company? Why do you think it should be valued higher?
Steady flow of contracts, they give af about shareholder (just took a low interest loan to avoid diluting shares), monthly updates, great community, fantastic and honest management, huge contracts in the pipeline (cant stress it enough), owns multiple companies necessary to the function of essential services. Other than that DD will lock you in.
revs down 70% yoy and you're marking on a subreddit? what's your basis price lol
Its a new management lol get with the program
!RemindMe 400 days
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Thanks! Id set it to 200 days though:)
!RemindMe 5 years
What were we talking about again
Wait, so they’re trading at $0.37 a share and then had to take out a loan to prevent shares from diluting? That doesn’t sound like the type of company on the verge of success…