Yahoo is being valued at negative $1 billion, after its BABA and Yahoo Japan spinoffs. German 30 yr yields are under 1% and shorter duration sovereign yields are negative in most western democracies. Our 10yr yield is under 1.7% and TLT is at new highs.
Oil is cratering and the Dry Bulk Index is at its lowest point since 1986.
The entire commodity sector is in shambles and if it weren’t for US GDP numbers suggesting the economy can grow at 3%+, one would say we are trapped inside of a vicious deflationary cycle, one that stands to absolutely destroy equity prices.
Or, maybe we’re all fucking cowards and have COMPLETELY LOST OUR FUCKING MINDS, by giving governments our money for 10 years at NEGATIVE yields. This is unbelievable to me, frankly, how so many smart people can be so fucking stupid. There isn’t a credit crisis or an event that should cause you to stow away money into the coffers of Swiss central banks, locking in negative rate of returns.
Why not buy AAPL or SHAK instead?
One thing is for certain: we are in a new paradigm and the old rules do not apply. Adjust or die.
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Fly, what’s your thoughts on one of your old picks, WNC?
Don’t like it.
Yes! My bloated gov’t pension is secure another day. However my short bond hedge for my pension is taking a shellacking.
This is probably a dumb question, and I’m missing something obvious but: Why wouldn’t the Fed just start dumping all the bonds they’ve bought via QE the past couple of years to all the TARDS lining up to pay them 2% for a 30-Year bond?!
Because they think it goes higher? They’ve been right thus far.
10 year is at 1.68%, 30 year is 2.25%.
my bad
https://www.youtube.com/watch?v=29BoqCMRBFk
Fly, you still in ICPT?
yes
SHOMP was more onomatopoeia than acronym this time.
Hi Fly,
By my calculations, YHOO owns 383000000 share of BABA, 7572174 shares of HDP, and 2021540800 shares of YHOO Japan, and 6.9B net cash, so the value of YHOO should be somewhere around -$6.46 Billion