Wednesday, July 06, 2016


Watching European yields fall yet even further

Do investors hope to find Yet A Bigger Fool to sell to? or do they really think we'll be 0.2% worse in 10 years?

But I am starting to wonder as I watch 10 year yields in Europe go negative etc that this is all simply a case of “mis-allocation” and that people piling into negative bond yields because that's where "their" cash allocation goes each month (eg the same way Australian investment property is going into ever lower property rental yields with higher purchase prices)….because “that’s what you do”.

I’m starting to wonder if our personal investment dollars wouldn’t be better off going into “startups” (heck possibly even going into actual lottery tickets) as the yields we’re getting in Australian property rentals seem to be getting worse and worse even though we are the ones taking the risks eg banks aren’t taking any risk at all and they are collecting 4.5% (or over 2% profit with .5% operating costs and under 2% cash costs).

The real problem is with inflation continuing to eat into cash (eg real inflation and not the bullshit figures the government is giving us) is it just a matter of TINA (There Is No Alternative) and all will right itself eventually once demand comes on? or are we just setting up for yet another even bigger collapse? …..what to do….what to do?

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