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/biz/ - Business & Finance


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49640951 No.49640951 [Reply] [Original]

BOND MARKET IS A LEADING INDICATOR AND IT IS INDICATING WE ARE FUCKED

>> No.49640990
File: 244 KB, 1241x594, DFECB2BD-38A9-49DE-A2DE-87C8FC6EA5DF.jpg [View same] [iqdb] [saucenao] [google]
49640990

Help me summon double digit 2 year bond yields

>> No.49641444

>>49640951
wtf can we go back to 7% yields? I will unironically buy bonds if that happens

>> No.49641877

>>49640951
b-bb-ut
>muh tighter lending practices
>muh highly qualified buyers
>muh supply and demand
>muh high earning tech wfh owners
how could this happen?! I thought HOOMS WENT U PFOR EVER!

>> No.49642004
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49642004

>> No.49642627

>>49640990
*right click*

>> No.49642688

how do you participate in the bond market besides etfs?

why isnt there bonds like equities in brokers?

>> No.49644208

>>49640951
>don't hold stocks
>don't own house
>don't owe debt
>don't have a lot of cash
>hold a bunch of shiny rocks
>some crypto, but I don't plan to sell in 5 years
how does this affect me?

>> No.49644268

>>49644208
It can affect whether or not you can take your money out of a bank, if your bank (which invests in bonds) bought the wrong ones with too much leverage.

>> No.49644413
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49644413

>>49641444
What if infation more then doubles the yield? Or, the US goverment defualts?

>> No.49644667

>>49644413
>What if infation more then doubles the yield
That's about timing but yeah that's a good point

>the US goverment defualts
Then I will probably have a lot more problems. I have invested in some physical goods I can use to barter with in that case tho

>> No.49644686

>biz is too stupid to understand what this means
lmao no wonder why no one is responding

>> No.49644785

World economy is fucked. Lean back and watch it all burn. Then, lets try to make it when the dust settles

>> No.49644813

>>49640951
and that's a good thing.

>> No.49644818

>>49640951
Not 2008 crash but 2000 crash is coming. 3 years til bottom and 15 years to recover back to ATH

>> No.49644820
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49644820

>>49644686
Those of use that are not crypto fags, and meme stock holder do.

>> No.49644850

>>49641444
If we get to 7% there won't be an economy to buy things with the money you make.

>> No.49644892
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49644892

>>49644818
It the start of derivative bubble burst, so it 2008, 2001, 1970s and 1929 all together!

>> No.49644948

>>49644686
>biz too stupid to know what this means
Literally no one does. Financial media is virtually silent. Even zerohedge is just doing their usual doomer shit without mentioning the bond market.

>> No.49644980

>>49644892
Okay it is this, I am coping. 100 year bear market

>> No.49645008 [DELETED] 

>oh look guys, the 10 year yield is spiking
nothing fucking happened, it should be called the two week yield
>but muh inflation
literal nothingburger, wow the pizza down the street increased by $1 since last year holy shit it's over
>but muh recession
yeah you mean a market correction that will result in some redundant jobs getting sniped
>but muh gas prices
who cares
>muh crypto crash
it will dump some more and go back up, who cares
>y-you'll see next week
yeah maybe next week + 1 week, touch some fucking grass

>> No.49645071
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49645071

>>49642004
memes aside he's evidently convinced it's gonna happen ... rip

>> No.49645238

>>49640951
Germanon brainlet here.
What does this mean for us and why can't that yield normalize around the bottom again, like it did before?

>> No.49645367

>>49644948
How do I prepare my portfolio? Any advice helps thanks.

>> No.49645398
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49645398

>>49640990
>>49642627
I'm helping

>> No.49645417

>>49644948
this .. was on a call with a handful of wall street guys today and they talked about stocks and crypto. I wanted to ask about bonds but I know better than making those types feel dumb.

>> No.49645440

>>49645238
bonds are what people buy when there is market instability.

Huge market crash in America in 2000, 2008, and 2019. Basically this plot shows there is more money being moved into bonds than in 2019, and that crash was brutala.

>> No.49645461

Everyone who isn't already a multimillionaire should welcome this. Sure, there will be a few years of pain, but you will get to accumulate at the absolute bottom

>> No.49645462

>>49645440
insane amounts of crypto is moving into bonds

>> No.49645489

>>49645367
Greg has been predicting commodities will skyrocket in this scenario. His logic is that money will flood out of stocks and bonds and have nowhere to go but into commodities. My only worry with this is that if there is a credit crunch, everything will crash including commodities.

>> No.49645490

>>49640951
wow i can get 3.4% risk-free apr on my cash?

pretty based if you ask me

>> No.49645541

>>49645489
If historical events are anything to go by, commodities will crash alongside everything else, but they will also be the first to recover. Smart people are sitting in cash and waiting for the crunch so they can make a commodity play at the bottom. The Ukraine war putting pressure on oil is a bit of a wildcard

>> No.49645546

>>49640951
We're really picking up where we left off in late 2019, aren't we

>> No.49645600

>>49644208
Are you me? And are we gonna make it?

>> No.49645621

>>49645546
Yep. It was about to crash back then but Corona arrived and Fed had a free way to print trillions of dollars.

>> No.49645685

>>49645440
huh? money is moving out of bonds, not in. or are you just memeing? higher yield = people selling

>> No.49645748

>>49645490
> wow i can get 3.4% risk-free apr on my cash?

Kek you can get -5% risk free, inflation adjusted. Congrats on this

>> No.49645776

>>49644208
>How does this affect me

You literally have no assets and very little wealth. You will probably die poor and alone and be forgotten. Also some shitskin will loot your shiny rocks as you are bleeding out after he shanks you.

>> No.49646014

>>49645489
Thanks. Any idea of timeline? I've got some physical precious metals and some gold miner stocks. Will this help?

>> No.49646054

>>49645541
Are gold miners including juniors a good play? How will we know the bottoms in?

>> No.49646165

>>49644208
you might lose your job just like everyone else

>> No.49646266

>>49646054
yes very good play if you know what you're doing. gold will go lower with another rate hike so you can wait a little longer i think. use a site called ceo.ca to read about mining companies

>> No.49646339

>>49640951
The fact so many of you think it will happen means it probably won’t

>> No.49646406

>>49645440
Bond yields going up means bond prices are going down. However, you are right that people usually seek safety from market instability by buying bonds. The fact that they're rapidly selling bonds while risk-on assets like stocks and cryptos tumble indicates that this is a lot bigger problem than your typical market correction.

>> No.49646508

>>49646014
The time is now. I'm waiting a few more days to see what happens after the Fed meeting.

>> No.49646587

>>49645748
>stonks down 20%+ before inflation
>crypto down 50%+ before inflation
sure i'll take -5% after inflation, numbnuts

>> No.49646673
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49646673

>>49640990

The curve is already wretching. They are going to be hiking into an inversion.

>> No.49646723

>>49640951
>Release the Bonds FUD

>> No.49646791

>>49644686
I'm invested in bonds and I have no idea.

>> No.49646818
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49646818

>>49646339

>The fact so many of you think it will happen means it probably won’t

>> No.49646881

>>49645071
are junior miners a good play?

>> No.49646901

>>49640990
ok i will

>> No.49646952

>>49646881
inflation rekts junior miners
i would only have a very small amount

>> No.49647015

>>49646881
just buy commodities it's a sure bet at this point. I'm just keeping some powder dry for Bitcoin >10K or I would be all in

>> No.49647048
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49647048

don't care monkey cases still spiking all in SIGA

>> No.49647061

>>49645541
yeah they will fall at first but recover very quickly

>> No.49647162

>>49646818
this is the most autistic mentality, if everyone thinks its going to happen it gets willed into existence, it's like if you stacked the deck with only aces and one 4 and you dumbasses went like
>yeah, the decks stacked but everyone thinks theyre gonna draw an ace so theyll draw a 4
the most brainlet retarded shit

>> No.49647223
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49647223

>>49640990
for the alliance

>> No.49647222

>>49647061
>very quickly
Depends entirely on how long the Fed keeps up QT and raising rates. When they slow down or stop, commodities will begin to recover. But that could be 6 months or 6 years. Nobody knows, not even the Fed themselves because at this point they just play as they go

>> No.49647499
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49647499

>>49646673
Only one way out of this.

>> No.49647580

>>49640951
Didn't most big stocks moon after the 2008 crash and after all the normies sold?

>> No.49647605

>>49647580
nah bro it mooned when they turned on the printers

>> No.49647727

>>49647580
2009-2021 was fueled entirely by Fed turning the moneyprinter on full speed through QE.

Now they are doing the exact opposite trough QT, which obviously means the market will crash. Some people speculate that they will have to re-initiate QE if the market crashes too hard, but the high inflation makes that impossible in the forseeable future

>> No.49647821

>>49647580
>Didn't most big stocks moon after the 2008 crash and after all the normies sold?
It took until 2014-15 for the Dow and SP to break their 2007 records.

Tech stocks went on a good run, but even they still took 2-3 years to get back to where they were.

>> No.49648419

>>49647222
Maybe in a normal recession, but in this scenario commodities would be a safe haven for equities decimation. Theoretically this could happen with crypto too, but I'm not really convinced anymore seeing the unbelievable amount of greed and over-leveraging hiding beneath the surface the last few weeks -- at least in the short term. Anyway, commodities will literally moon.

>> No.49648462

>>49647727
>but the high inflation makes that impossible in the forseeable future
correct so recession or despression is guaranteed, but a debt market collapse would turn this into an apocalypse

>> No.49648888

>>49640990
The bonds are fucked

>> No.49648948

>>49648888
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

>> No.49648986

>>49648888
Checked and AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

>> No.49649020

panic! panic! panic!
fear! fear! fear!

yes things will suck for a year or two. just buy BTC when you are able to, a little at a time, try not to take on more debt, try to keep your job (or get a new one if it goes south) and wait for the next stock and crypto bull run that will make 2021's look like a hicktown flea market

>> No.49649041
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49649041

>>49648888
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

>> No.49649045
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49649045

>>49645398
>>49640990
>>49642627
thx for summon

>> No.49649048

>>49648888
Ahem
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAHHHHHHHHHHH

>> No.49649061

>>49648888
Fuck, what have I done?

>> No.49649077
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49649077

>>49648888
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
yummy nato cartridge

>> No.49649275

>>49640951
The yield going up means investors are selling bonds, correct?

So let me get this straight. Investors are:
selling stocks
selling crypto
selling gold
selling bonds
hoarding cash
All while the dollar is at 40 year high inflation

Is this a correct assessment?
Wtf is wrong with people?

>> No.49649295

>>49649275
>selling gold
no

>> No.49649328
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49649328

bond my penis to ur mom's anus

>> No.49649340

>>49649275
Cash is trash, but everything else is even trashier. Crazy times

>> No.49649442

>>49649340
If someone was going to hold a US government-backed asset (the dollar), why not at least hold a US government-backed asset (bonds) that somewhat offset inflation?

The only reason I can think of is to have readily available liquidity

>> No.49649443

>>49646673
People are fleeing stock markets to get MUH FREE GIBS by investing in certificate of deposits/whatever. That's when you're supposed to get in long positions.

>> No.49649502
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49649502

>>49649275
They are not selling gold, and even the paper derivative is not moving much, and that is with a rumor of a huge gold find in Uganda.

>> No.49649715

>>49645776
>some shitskin will loot your shiny rocks as you are bleeding out after he shanks you.
He'll need a metal detector.

>> No.49649921
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49649921

>>49648888
i was here

>> No.49650070

>>49646587
Good thing past performance guarantees future results, huh dick breath?

>> No.49650246

>>49648888
No indicator more leading than Kek's will.
Also: AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

>> No.49650343

>>49640951
>2008 tier
No pal, it's going to be great depression tier.

>> No.49650522
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49650522

>>49646881
Dude, you want safe growth, not unsafe speculation.

>> No.49650523

>>49644686
>lmao no wonder why no one is responding
Or maybe it's because this is the umpteenth time this thread has been posted in the last few months?

>> No.49650557

>>49644208
This is me. We are going to make it.

>> No.49651026

>>49644208
>>hold a bunch of shiny rocks
Uganda regret this.

>> No.49651133
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49651133

>> No.49651859
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49651859

Bond yields being inverse to bond prices is not wallstreet magic, it is simple mathematical laws at work. if the treasury issues a 10% bond at 100$ price, you receive 110 after some number of years. Bonds are a class of equity which means they trade like stocks, you can buy a bond and sell it the next day if your so desire. If supply increases greatly (selling) the price of bonds would fall; and in our example above if the price went to 50$, then a 10% yield just went to 120%, as the payoff is fixed at 110. When you see these 10, 20, 30 year bonds have LOWER %YIELD than shorter term bonds, this means the holders of the longer term bonds are taking financial losses because they could instantly sell the longer term bonds and buy shorter term bonds with A HIGHER YIELD, which would lower the price of the longer term bonds; hence driving their yield up. Why do the long term holders not behave 'rationally' and sell the 20, 30+ and instantly secure higher profit in shorter term higher yield bonds? big ass banks, hedge funds, prime brokers use these bonds as collateral and leverage them to the tits like degenerates. If one sells the price goes down and they would be margin called requiring a posting of more collateral, they are all on a wobbly structure balancing on a cliff and if any decide to climb out and leave they all die. This is my understanding and I am not aware of other macro level reasons why longer term bonds would have lower fucking yields than 1,2,3,5 year notes, literal insanity.

>> No.49652161

>>49644948
This, nobody knows shit

>> No.49652603
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49652603

>>49648888
only the DMT elves can save us now

>> No.49652665

>>49649275
they're not hoarding cash, they're buying fuel and food which is why they're spiking.

>> No.49652705

>>49646673
>They are going to be hiking into an inversion.
They need to accelerate balance sheet reduction so as to keep the curve normalized. Just raising rates on the front end is not gonna cut it.

>> No.49652716
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49652716

Was 12 when the 2008 crash happened (now 25)& dont really remember much from then, someone explain to a newb what life will be like when it crashes again? How does this affect me a normie poorfag

>> No.49652733

>>49652716
Nobody can say. In 2008 everything didn’t fucking moon in price so you could still buy gas and food. Back then if you kept your job it was an amazing buying opportunity.

Now everyone is getting different degrees of fucked.

>> No.49652902
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49652902

>>49652733
Nice dubs
I mean yea petrol & food is fucked beyond a degree in Australia (everywhere in the world too) but man its pretty scary seeing it happen.
On the bright side we will see a WW3 in our lifetimes

>> No.49652963
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49652963

>>49640951
>>>49640990

>> No.49653128

>>49652716
small things like your walmarts get a ton of business so they're all being upgraded right now with some grab & go model.
when I went to buy a 2L of vodka yesterday, they got rid of the 8 times distilled smirmoff and started carrying the dogshit hobo vodka e.g. popov.
and you know, you have a high chance of getting laid off lol.

>> No.49653481

>>49648888
czech'd

>> No.49653546

>>49640951
whats the ETA on this?

>> No.49653559

>>49640951
so what happens when all the illegal immigrants simply refuse to be evicted this time around and the police can't do anything about it???

>> No.49653562

>>49645440
>than in 2019, and that crash was brutal
That crash was weak. give me a real crash.

>> No.49654708

>>49647162

Sentiment traders believe that markets never have to reconcile with physical reality.

>> No.49654742

>>49640951
Sounds like its time to slurp all these cheap tech stocks, amirite?

>> No.49654760

>>49648419

Check commodities in 4Q08 to see how they hold up when the shit hits the fan.

>> No.49654802

>>49654760
This time it's unironically different. '08 was the real estate bubble, this time it's the everything bubble and there's no way to find a soft landing since all tools have been exhausted

>> No.49654832
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49654832

>>49640990
I'm not on my horde character tonight sorry.

>> No.49654845

>>49654802

>but this time wasn't different

>> No.49654851

>>49652902
the price of fucking lamb right now my god

>> No.49654952

>>49648888
It's ogre now

>> No.49655647

>>49648888
Digits confirmed

>> No.49655686

>>49648888
its over

>> No.49655697

>>49640990
Nigger

>> No.49655767

>>49648888
Absolute perfection. Puts on the NASDAQ, calls on the commodities producers.

>> No.49655791

>>49644686
Revelation 6:6, NIV: Then I heard what sounded like a voice among the four living creatures, saying, 'Two pounds of wheat for a day's wages, and six pounds of barley for a day's wages, and do not damage the oil and the wine!'

>> No.49656078

>>49649295
literally yes, gold is down as well

>> No.49656082

>>49644667
How can the US default when they can literally print away their debt?

>> No.49656186

I don't think 2008 trier crash is coming since everyone is expecting it.

>> No.49656702
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49656702

This guy was telling anyone who would listen that this would happen 14 years ago.

Holy shit 14 years, most of you weren't even born then.

Jesus, what am I doing with my life?

>> No.49656771

>>49649275
You need to keep in mind that most institutional investing is done by algorithms and bots.

>> No.49656838

>>49656082
inflation is the nation killer.

>> No.49657124

>>49654802
>This time it's unironically different. '08 was the real estate bubble, this time it's the everything bubble and there's no way to find a soft landing since all tools have been exhausted

The housing market hasn't even pop yet. Especially in the cities like New York and New Jersey.

>> No.49657150

>>49656702
God damnit I wanted him to win so badly. His son is such a retard too it’s all so fking absurd

>> No.49658374

>>49649020
>MERELY TWO MORE YEARS, TRUST THE PLAN FELLOW MOO-MOOS

>> No.49659546
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49659546

>>49648888
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

>> No.49660465
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49660465

>>49653546
No one really sure, but soon.