You Shouldn’t Give up On Bonds


Best of the Bond Market for March 2nd, 2012

Article by @RandomRoger  

Bond’s Have Lost Their Purpose?   This line sums it up: “there will be some sort of market event (talking generically) that causes stocks to drop, sends people to bonds and leaving many people finding out at the wrong time they had too much in equities. This has repeated over and over in stock market history.”  Even if I disagreed with Roger (which I don’t) I would still applaud him for giving people another view as out of every 10 articles I currently read on bonds 9 of them are sell recommendations.

Tweet from @ScottMartindale

ETF Fund Flows: SPY Bleeds 1.56 Billion – On the other side of the equation this article from Index Universe shows that at least for March 1st investors have not been listening to all the bond market bashers.  As investors withdrew $1.56 Billion from the the SPY on Thursday they added $174.2 Million to the LQD which tracks the Liquid Investment Grade Corporate Bond Index.

Tweet and Article from @zerohedge

AAA Rating or Crowd Wiki Values Your Input – Wikiratings is the wikipedia of credit rating.  We agree that the ratings agencies are conflicted and there needs to be a new system put into place where the people being rated are not the ones paying for the rating.  With this in mind we hope this takes off.  Currently it seems like it is good for Sovereign ratings but a little lacking on the corporate front.

Tweet from @pswagel

Geithner WSJ oped on Dodd-Frank  – @pswagel notes that the article was lacking anything on housing finance reform.  We had a read as well and were surprised that Geithner was surprised that people think a lot of it is over complicated.

Tweet and Article from @cate_long

Forget Volcker — bring back Glass-Steagall – MuniLand – Don’t know enough to know for 100% if she’s right but do know enough to know that more people should be talking about this.  The bottom line is that the minutia of financial markets are too complicated for politicians to be deciding so a more Macro approach is needed.  Would be interested to see someone try to argue why this is not a good idea.




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