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Bond yields down (bonds are being bought) and a rebound day in growth/tech after mostly getting obliterated over the past few weeks.
Some, including David Tepper, expect bond yields to stay in this range over the next several months as Japan is becoming a net buyer rather than seller of US Treasuries.
I have only invested in US Savings Bonds...which I now cash in every year as they mature. They have not been bad investments. Pretty good, actually.
This afternoon’s bond auction could be very telling.Originally Posted by Guisslapp
Well...do tell!
I don't follow the bond market and am, admittedly, not well-versed on it.
Well, if the auction is stronger than last week’s, particularly from overseas buyers, it supports the thesis that the 10 year is not heading to 2% (or higher in the short term). This would be bullish for stocks, considering the volatility that has been triggered by rates over the last several weeks.
It was strong enough. Yields are down, stocks are up.
What is that old saying "buy on the news..." or something to that effect?
GE's CEO mentions...MENTIONS, mind you!...the possibility of doing a reverse split, to the tune of 1 to 8, and the stock is getting kicked in the teeth today. Even in the midst of some good news, well not just news, but a reality, of GE Capital shedding some debt and GE aerospace selling its jet leasing division for a $30 billion cash infusion and some stock in its former rival in that sector, AerCap. You would think the REAL news would trump the speculative news of the RS, but nah! retail investors are running for the hills!
This is why "Wall Street Big Cats" despise retail investors and are livid about the stimulus checks spurring newbie, first-time investors, and the influence of Robinhood and Reddit, etc. Said BIG CATS are used to being the only market-makers whereby they control pricing on equities. I suppose most of you have been following the Gamestop saga.
I think GE is a good long term play. It is General Electric and is still sitting on some key products, like jet engines, that will soon be seeing a resurgence. Thomas Edison must be rolling over in his grave...either that or celebrating GE's demise since the company was effectively stolen from him when J.P. Morgan masterminded a stock buyout and Edison was booted out.
“Buy the rumor, sell the news”
Yeah, that's it, and GE is a perfect example right now.
ETFs
Anyone have some insight, experience, and most importantly a recommendation on an ETF(s)? I don't hold any but am looking into them now.
Thanks!
What kind of ETF?
Total market like VTI?
SP500 like VOO or SPY?
Sectoral like the Sector SPDR ETFs from State Street?
International?
Thematic like the Cathie Wood ARK funds?
Which itch are you trying to scratch?
The BEST ETF(s) for dependable dividends. Read an article with recommendations for several, including KBWD, which the article claims is earning 15%, but on the Yahoo Finance site it shows 8%. And the comments are mixed.
The price has moved a lot, especially recently (upward) because it holds mostly financial services which have caught a tailwind with reopening and rising rates.
“Dependable” and “high” don’t really go together anymore. If you want yield at 10% , you will be taking on more risk.
I have seen that type of yield in mortgage REITS, MLPs, and ETFs that generate a portion of their income from selling covered calls.
Some of the super high yielders on the list do not look very liquid.
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