I am not bullish on stocks here, with this type of “FUCK YOU BEN BERNANKE” pin action. The bubble in bonds is popping across the board, effectively pushing up borrowing costs for asshole municipalities. Also, let’s not forget, Treasuries are the preferred investment for life insurance companies, investment arms, pensions and pretty every fortune 500 company. Where do you think CSCO or MSFT puts their cash reserves? They don’t throw it in the fucking checking account or a lock box.
Look at PCK, down 4.6% today. This is following an 8% drop last week. Something stinks and it’s not the fish. Other muni funds getting lit up include: BBF, EIM and MLN. Keep your eyes on corporate debt, via LQD and JNK. Should yields start to rise there, then look out stock market. Remember, this whole run up is due to the concept of free money, hookers and drugs. Should that shit disappear, well then, there isn’t much to get excited about up at these lofty levels, is there?
Top picks: FTK, SCO
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Indeud.
Buddy of mine who writes mortgages said his bank did not issue rates today told me that hasn’t happened before. Gary Shindig must be shittin his britches…
A few more muni funds to watch: BAB, BABS, BABZ, GMMB, HYD, ITM, MUAA, MUAF, MUB, MUNI, NUW, PML, PRB, PZA, SHM, SMB, SMMU
The Fed wants everyone to be in the stock market …
That doesn’t look promising right now.
You still hanging on to your VXX, Dr. Fly?
People with no jobs don’t buy stocks. Except for you day-trader types. But I bet most of you don’t consider yourselves “between jobs” or “unemployed”.
Shit, I thought those guys (Chambers, Balmer, et al ) kept the cash in bounce houses filled with 1000 dollar bills.
1st
FLY, what if the inflation from emerging mkt spread to US and EU and force Fed to stop printing $. What will happen to the equity market?
If low quality chinese-made futons at wallmart become too expensive due to inflation in Asia, how would that force the FED to stop printing $?
The whole idea of QE is to inject inflation. Once huge inflation in emerging mkt imported back to US, fed’s objective is achieved and they have to stop print in order not to get hyperinflation.
so who’s calling a top? you sayin get ready to go flat? pm’s gettin primed for a go? what happens to muni’s if state govt’s raise income tax,like they are hinting at in IL? regardless if the fed keeps bush tax cuts.i’m not into bonds.but if munis are tanking, would this be a bottom for them,then state taxes get raised in order to save their respective bonds? the bernank,why doesnt this dude just spank the buck and get done with it.
FLY, you choose sco to hedge exposure to FTK ? Is there any other alternative with less decay?
Short COP.
That would be a bold move. Foolhardy perhaps.
Agreud. “Due to the laws of gravity” doesn’t cut it for me. I won’t go against oil here. As for natural gas: “Keep firing Mr. Chekhov!”
That means I am still short natty via HND.
http://ir.eia.gov/ngs/ngs.html In addition to this major problem, there is the fact that many producers are still drilling wells without tie-ins until higher prices. Those 2 factors in conjunction suggest gas prices can’t rise much above current values for 3 years or so. They can however continue to go down. Storage is pretty much pressured to its safe operating limits. At some point they will have to put the brakes on production. That will crash nat price down hard when that decision is made.
It will be epic. Like a viking raid.
Where does apple put its 51Billion in cash? FDIC insures up to 100,000. Where do major corporations put all that money for safe keeping?
Offshore
so if the stock market crashes ala 2008, we get a safety trade back into long-term treasuries, which will boost the stock market up again. Nothing to see here. Buy everything. Go Tepper!
There will never be a crash ala 2008 again. This market is completely rigged at this point, and the fed will do whatever it possibly can to prevent another 2008. The end result will be a worthless dollar, and a higher stock market. Muni bonds burning are somewhat concerning, but I dont think the fed will allow this to leach into the stock market. They want to promote more spending, and higher interest rates will do just that. As long as corporate bonds dont get sucked into the malaise of muni bonds, there is nothing to worry about.
I think CSCO, MSFT, et al, will be buying some smaller corps with their $. CAT today was the start.
You guys need to come to the dark side and short some stocks and short some bonds, via TBT – it’s working.
TBT at mid-2008 levels is an inviting thought…
Been in TBT for ages now.
Natural hedge.
_
in TBT as of last week. Been working great so far.
Am in tmv and buying greenbacks since last week.
First
TLT is still up something like 6% for the year now, by my rough estimate from the chart rather than calculating it. So everyone depending on low interest rates is still that much better off than they were at the beginning of the year. Of course the bonds fell far and fast– but they were at ridiculously high levels for no good reason.
http://www.youtube.com/watch?v=SYxvVe9y5NQ
With the munis, bankrupt municipal governments can’t print money like the bankrupt federal government does, so why should investors take the risk of default?
We are no better off then Ireland or greece.
Our super high standard of living is nothing more then a fallacy.
We are all slaves to the corporation the lowest cost best price wins.
I can hire a MBA for fuck all offshore this week it’s china next week India the next Africa and so on.
We are paid too much we have pensions. It’s that easy this whole mess will end when we look at debt at government levels.
Where we are now is as good as it gets.
I am not a bear I am bullish on everyone else.
Buy the rocks and trees cause there are not enough to go around.
Theres more to life than free money hookers and drugs…. But enough money can buy about 95% of it, so fuck being poor nigga!