Bond Yields Have CRASHED to the Lows

In early 2016 they got down this low and then roared higher and once again we are here with the 10yr at 1.59%, down 5 bps wondering what it all means. The economy is supposed to be robust and big titted and strong. If it was, would rates be this low? I think not. Then again, profits are real and we’re raking in trillions. Businesses are firing on all cylinders. Monopolies go unchecked and we’re winning trade wars left and right, as our enemies deal with the plague.

Over in Europe, they still have negative rates, quite deep actually. If you have any decent sized account there, you’re paying a negative interest rate to your bank for the pleasure. This all gives me a sickened feeling in my gut, but alas — markets are at record highs and nothing seems able to disrupt it. Plus, and let’s not forget this, the central bankers have finally figured out how to eliminate the business cycle. No more boom-bust, just boom all the time because of excess liquidity.

Nevertheless, I have a mixed bag today, down on the day. Following my sojourn into virus stocks — I haven’t traded too well, aside from nailing the top in TSLA with puts.

I usually got to the gym in the morning, after taking my daughter to school. But today I slept in because her school was canceled and I feel great. I rarely get more than 4 hours sleep these days. About a decade ago, when I was a salamander like financial advisor, sitting poolside taking in the sun, I’d regularly get 7-8hrs per day and I never aged. Word of advice for the young punks reading this now, try to max out your sleep — it really does make a difference.

At any rate, back to work. Since I’m not making any money today I either need to cull some losers or find some winners.