I just need you to think this through, just for a second.
Rates are at zero percent and possibly going up by 25bps in a month. Because of that, people are selling their REITs and Utilities today, like rabid fucking dogs, because that 4% yield is gonna see some competition soon?
For fucks sake, TLT is down less than 2% today. In classic Wall Street fashion, everyone is getting so dramatic over the specter of slightly higher rates. Let me remind you: America has $20 trillion in debt. Don’t worry, the Fed isn’t going to raise rates to 5% and bankrupt the country.
I don’t own any REITs or Utes and I probably won’t buy any on this dip either. I do recall, however, REITs getting slammed to hell a few months back on the same concerns, only to come crawling right back to new highs, months later.
For now, the trade is short commodities, long banks. The yield curve will widen. Banks will rape people on credit card rates; and the market will accept the idea that rates can rise a little at the same time as Apple can still sell iPhones and people can still watch Netflix and take medicine and buy cars.
For fucks sake, I am surrounded by morons.
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THE hubris pleb here. thank you shorts for the CLDX squeeze. haha
Fly — any thoughts on AXP?
Capital One is better, COH
$COF
are the shorts enjoying WTW and HZNP?
p.s. bought moar TWTR today. *pleb crawls back in hole
This pleb has been short XLU from 45. All sectors must be destroyed, in turn and under the surface, while the market grinds higher.
Rates will rise once the market says they will. The fed will follow the markets. If bond demand for US debt is no longer there they will follow and keep rates at a level that is competitive enough to meet demand.
Seems like we rode this theme for a year prior to the crash bonanza
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Orson Welles and Tony Perkins on the front page !
Where DO you find these pics ?
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U R right, Fly. Rates will rise a tiny bit, eventually, and it won’t hurt the economy when it happens.
But for now, the Fed & every bank on earth & every hedge fund manager and economist on earth will keep jawboning about raising rates. Because, for the moment, that jawboning is is the new raising rates.
In June I noticed that my 0% balance transfer offers had their transfer fee hacked up 1% from the last offer. That quickly evaporated in August and they were begging me to transfer any balances back at the 3% transfer fee. So far no changes in those offers.
I added some D today, but not much. It’s like a CD, but it yields 3.8% and the dividend increases 8% every year.