boo!
>>62736029So freak out and panic sell everything. Faggot
>>62736029You are the only one scared by it
>>62736029The bond vigilantes are revolting.
>>62736029It's extremely bullish for bitcoin and hard assets if this continues
>>62736029High bond yields are good because it means people who bought bonds get to make money.
>>62736317Except all the people who owned the bonds before the yields went up, who not have large unrealised losses
>>62736348That's their fault for buying when yields were low. They should have bought when yields were high.
>>62736029Ok.
>>62736370What if they thought yields were high when it went from 3% to 4%?
>>62736485Then they'll freak when it goes from 5% to 6%.
>>62736029It should be. Shit is about to start breaking.
>>62736029Bond, James Bond
Is there any risk in buying bonds, or is that the sort of thing where if it goes bad, you have much bigger problems.
We are going back home.
>>62736985if interest rates go up the value of your bond fallsif the issuer goes broke you might lose your money
>>62736985if you can hold it to maturity without the govt going bankrupt, you get 100% of what you are promised. sell prematurely, and your bond goes up on auction and bidders decide how much your bond is worth (this can be good or disastrous).if you a 10-year buy at 5.25% and suddenly there's a recession and rates go back to zero say in the next three years, you suddenly have a 7-year 5.25% golden goose. if in the next three years, rates soar to 15% instead and you try to sell your piddly 5.25% bond, you get nothing.
i laugh knowing some retard bought a 2% 30 year bond in 2022 and will never make their money back
>>62736985Bonds have inflation risk, interest rate risk, default risk, and opportunity cost risk.Note that the US government has partially defaulted several times before (e.g. 1933, 1971) and it didn't cause societal collapse.
it should. 5% is where shit starts to break long term. macro shit, like the US debt payments. basically we're completely cooked either way, either we get hyper inflation or we get a fed with some balls to push rates up another 100-200 basis points. both options are horrible for the average person.
I'll be honest here, with bonds at these rates, stocks better be delivering at least 13-15% annually each year for 10 years guaranteed for me to even bother looking at them.
>>62737701the problem is stocks gains should be lower as bonds go up because of money generally moving into bonds and the refinanced debt burdening the earnings report of equities. if we're historically at 10% then the upcoming years should be 6-7%
>>62736985Lol
The glowing screen illuminated the quiet bedroom as the final click solidified the transaction. Digital confirmation text flashed green, securing a massive chunk of his life savings into stable, long-term US Treasury bonds. A sterile sense of safety washed over him, a relief that his wealth was now backed by the full faith and credit of the government. But the relief curdled when the computer tower began to emit a wet, rhythmic pulsing sound, and the monitor's light bled into a sickly, bureaucratic green that stained the walls.From the printer slot and the cooling vents, paper began to spill. It didn't drop; it slithered. Thousands of crisp, freshly inked Treasury certificates cascaded onto the carpet, their intricate geometric borders shifting like the scales of a serpent. The room filled with the choking smell of ozone, old ink, and decayed paper. The mass grew exponentially, climbing his legs with a dry, deafening rustle. He tried to stand, but the overlapping sheets wrapped around his ankles, their razor-sharp edges slicing through his clothes with agonizing, paper-thin precision.He opened his mouth to scream, but a ten-year note whipped upward, slicing across his lips and sealing them shut with sticky, wet ink. The paper entity surged over his chest, hundreds of official federal seals pressing into his skin like burning brands. The sheer weight of the national debt crushed his ribs, compressing the air from his lungs as the microscopic text on the borders began to actively drink his fluid and heat. By the time the screen clicked off, the room was empty, save for a pristine, silent stack of bonds sitting neatly on the desk...
>>62737245>>62737328>>62737761OOOOOOH, I had a complete misunderstanding of how bonds worked. Thanks
>>62737792Base schizo
Surprisingly good thread.
>holy shit the rates are too high, fiat is OVER>holy shit the rates are too low, fiat is OVERThe gold/Bitcoin/china stocks shills become very transparent if you've been browsing here more than a year
>>62737792Based schizo
>>62740317Thank you!
