iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,433 Blog Posts

I Told You to Go Home

I was just speaking to a local doctor who got burned in the market during the 2008 crisis. After losing 30% of his assets, he put his million dollar portfolio into bonds. But he didn’t just buy any sort of bond: he bought junk. He was telling me that “stocks were too risky” and that he needed to make “7% per year in bonds”, which I told him was “absurd” and that he was taking on more risk with that strategy than buying blue chipped stocks.

There is a great bubble in bonds. This man is “all in” on junk, ignoring principle drawdowns, providing dividends are paid.

There is a lot of panic in the bond markets these days. California munis dropped almost 4% today.

Look, I am a bull and want to own stocks. I am not shorting stocks because I believe the market can jump higher at any moment in time. I am a bull on housing, technology and finance. But timing is everything.

I will wait a little bit longer to make sure this isn’t a real full blown chinese sponsored melt down. If you bought stocks today, you just weren’t thinking about risk and may have to deal with the consequences tomorrow.

 

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39 comments

  1. The Zombie

    The Fly is God.

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  2. The Once and Future Rhino
    The Once and Future Rhino

    PMM punching my lights out. Where’s Bill Gross at?

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  3. ROB CARL

    Note- I am no longer Rob Carl the Great, as I have decimated all my earnings today.

    Good luck to all of and you, and goodbye cruel world.

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  4. Raul3

    It must feel good to have trimmed your FRO before the heat wave.

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  5. Juice

    we got The Fly whispering in one ear to go home & The Devil in the other to buy stocks

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  6. TraderDR

    20 days since a post and Gold/Silver destroyed

    JakeGint is dead

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  7. Att: Fly

    http://www.youtube.com/watch?v=m7EFmC4tQ7I

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  8. razorsedge

    i am home, safe in an unspecified bunker,with helmet on. i have statically placed food stuffs
    and a large amount of toilet paper. OH WAIT, my moms calling ill get back to you guys later.

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  9. surplusdroids

    At home in my underground bunker.
    Eyes peeled with a large pile of sandwiches.

    FAZ mobile taking off. (not going for a ride.)

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  10. RippinTits

    Fly,

    Wanted to get your opinion on AAPL. Is it dead money or a buy at these levels? Thanks!

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  11. djmarcus

    I SEE URINAL SHADOWS

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  12. It Is Showtime

    Japan gone. China going. Just need Europe and bears are a movin

    Then we can join if we haven’t started already

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  13. ramrod

    Any opinion on DEF?
    Any ETF you can recommend?

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  14. Stan

    All dips must be bought

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  15. Gint

    Fuggit!
    NUGT!

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  16. flyaway18

    The best humor surfaces on down days, it’s funny stuff.

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    • razorsedge

      i was in the bunker, eating some ritz crackers, it was dark. i lit a candle, what i thought were sesame seeds, they were moving. they didnt tase bad, but it creap-ed me out a little cause i didnt look at the expiration date., i was relieved to see i still had 2 months til they expired. catastrophe averted.

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  17. Jake the Rake

    Stand by.. for the fry.. I ain’t sayin the sell off is over…. However I suspect their will be Bear Balls on the spit shortly.. no pun

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    • Jake the Rake

      Le Fly is now in his innermost sanctum and wishes not to be disturbed except from the lad at the local deli delivering large roasted beef sandwiches.. however he mumbled this missive to me as he handed me $100 dollar tip.. yes.. AAPL is dead.. yet.. it shall rise again to new heights in the coming year..

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  18. Jake the Rake

    USAC you don’t suck held fast lads

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  19. Jake the Rake

    Whom else spit into the bears eye?
    CMRE NICK HGTC PCC GBDC

    check the divys boys

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  20. Jake the Rake

    and when did PJP ever fail the LTP (long term port) ?

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  21. mjolnir

    Written here a litany of what each “thinks” about issues and markets. My sublime naiveté is convinced the issue is defined by what we KNOW. What are the FACTS. For starters only, I believe facts support the future of our civilization will be dramatically affected by, stem cell and gene therapy, regenerative medicine, 3D printing, psychosis management, cloud refinements, etc. Show me the science that works and see the future $$$.

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  22. Mr. Partridge

    Dr,
    I think Chinese are dumping US treasuries + emerging market bonds…
    So many waited for so long for this bond bubble to burst and here it is… 30 year bull market os over.
    Interesting times..

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    • Mr. Partridge

      looking at booze stocks for my shopping list: DEO SAM TAP BEAM… all ideas welcome 🙂

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  23. jlab

    I had $400K in 3 diff bond funds; high yield, tax free municipal, and intermediate term. I entered in late 2011. With dividends reinvested I was up $60K a month ago. I sold half then. With yields in the 3-5% range and prices in the last 2 weeks dropping 1-1.5% per day I exited the remainder a week ago when they dropped down to my cost basis. I, like millions of others, were using these funds as substitute savings accounts forced in by the Fed’s easy $$ policy and hunt for any yield whatsoever. I have no idea how far these funds will drop but the amount of $$ invested in them over the last few years is phenomenal and when people start seeing this loss of capital on a daily basis they get the f**k out in case it escalates.

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