Back to Basics, by Robert Gore

Posted by straightlinelogic 1 month ago to Economics
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So, “no fear” characterizes the bond market as well as the equity market. Crowd psychology is virtually unanimous and invariably wrong at big turning points. We’re at such a turning point. There is money to be made lending money to the U.S. government short term, for a period no longer than six months, what’s known as a T-bill roll. The government won't technically default; it can always redeem its fiat debt with more fiat debt. Short-term rates will ratchet higher with the rest of the yield curve. By rolling your investment, you can be a beneficiary rather than a victim of higher rates.

Any other exposure to debt or equity markets is playing on the beach just before the tsunami makes landfall.

This is an excerpt. For the complete article, please click the above link.
SOURCE URL: https://straightlinelogic.com/2024/09/26/back-to-basics-by-robert-gore/


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  • Posted by VetteGuy 1 month ago
    When I hear all the hype about the "new records" the stock market is setting, I have to shake my head. No one seems to realize that the stocks aren't worth more, it's just an indication that the dollars are worth much LESS.
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    • Posted by mccannon01 1 month ago
      BINGO, VetteGuy. Besides, the Dow so-called "Industrial Average" so touted by the media isn't very industrial anymore. Way too many banksters and financials in the mix to make it any kind of indicator of industry or manufacturing or productive enterprise. Smoke and mirrors - the whole darn thing.
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