Some investments may prove more valuable than others.
Posted on 03/12/2020 1:32:16 PM PDT by NRx
Wednesday was an unsettling day on global financial markets, and not just because the stock market fell sharply enough to bring a decade-plus bull market to an end.
Underneath the headline numbers were a series of movements that don’t really make sense when lined up against one another. They amount to signs — not definitive, but worrying — that something is breaking down in the workings of the financial system, even if it’s not totally clear what that is just yet.
Bond prices and stock prices were moving together, not in opposite directions as they usually do. On a day when major economic disruptions resulting from the coronavirus pandemic appeared to become likelier — which might be expected to make typical market safe havens more popular — many of them fell instead. That included bonds of all sorts and gold.
And there were reports from trading desks that many assets that are normally liquid — easy to buy and sell — were freezing up, with securities not trading widely. This was true of the bonds issued by municipalities and major corporations but, more curiously, also of Treasury bonds, normally the bedrock of the global financial system.
(Excerpt) Read more at nytimes.com ...
Hmmm. My recollection is that it only recently recovered from Obama devastation when Tump tok office.
watch Soroz
AGG -4.0 close today....there’s goes all them gains in the recent rally, plus everything else back to Aug of last year.
Still nuthin compared the devaluation of stocks in the correction.
If cash will be king for a while, my hesitance to invest the excess funds from the sale of our CA house back in late 2018 may turn out to be a blessing.
My first thought as well.
Somebody is going to be buying these stocks on the cheap.
I've been watching ESH20 charts most of the week. There are traders taking profit going down and up. Only ones losing are sheeple selling after going long.
Cash is sitting on the sidelines.
Obama devastated Main Street - Wall Street did just fine.
Skynet began to learn rapidly
and eventually became self-aware at 2:14 a.m., EDT, on August 29, 1997.
In a panic, humans tried to shut down Skynet...
Agreed - what we may be seeing is a Mt. Everest of debt, enabled by global central banks, all pumping fiat money, QE and ZIRP into their economies, finally collapsing.
You own a modest home with a $200k mortgage. The home fits your needs; you maintain it; you take good care of your home as do your neighbors. All is well.h/t to sundanceTomorrow you find out the city council approved a permit for a railroad to run behind your neighborhood. The value of your home drops 25 percent on the news of the permit.
Nothing about the home has changed. Everything is just as comfortable for you next week as it was in all preceding weeks. Other than a pending rail line everything is the same.
A month later you find out the city withdrew the railroad permit because the railroad company changed their mind. The value of your home returns to where it was before the news of the permit surfaced. See how that happened?
Now replace the railroad permit with the coronavirus.
Don’t get in his way...he’s on a roll /s
I was happy that we were heavily tilted toward bonds and cash, and up until a few days ago, life was good. Now, not so much, but a whole lot less hurt than those heavily invested in equities.
Your recollection is correct.
New York is experiencing the epidemic, à la Italy and Seattle.
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