Comments on: Stocks from Venus, bonds from Mars http://blogs.reuters.com/great-debate/2010/08/17/stocks-from-venus-bonds-from-mars/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Pete_Murphy http://blogs.reuters.com/great-debate/2010/08/17/stocks-from-venus-bonds-from-mars/#comment-31424 Wed, 18 Aug 2010 11:01:03 +0000 http://blogs.reuters.com/great-debate/?p=7794#comment-31424 Christian67, check your facts: as reported by the Treasury, China has actually been selling bonds “like crazy.” But other nations, primarily Japan, have been snapping them up.

Not discussed by James in this piece is the role of the trade deficit, which has been exploding since bottoming out in May of ’09. All of those trade dollars have to come home to roost somehow. Currently, the purchase of U.S. treasuries is the only way for that to happen. That’s why bond yields are staying so low. Since most companies are investing the bulk of their capital overseas (primarily in China), investing in equities only adds fuel to the fire, increasing the dollars that need to be plowed back into U.S. treasuries.

]]>
By: nbywardslog http://blogs.reuters.com/great-debate/2010/08/17/stocks-from-venus-bonds-from-mars/#comment-31422 Wed, 18 Aug 2010 06:05:32 +0000 http://blogs.reuters.com/great-debate/?p=7794#comment-31422 The current landscape has some pretty green oases on it, dappled among vast areas of dry grass, arid earth and huge piles of old junked cars.
Most investors are sitting on the edge of the oases, looking in: it’s a nice view, but hopelessly misleading.

As the Fed showed last week, the US is running scared of full QE because China has made its feelings very clear about that route. And as the permanently disappearing jobs show month in month out, Americans (like we Brits) need new things to make and do.

When Bernanke says ‘uncertain’, it’s time to stay out of stocks AND bonds, buy contemporary and precious metals, sit on appreciating cash, and wait it out.

http://nbyslog.blogspot.com/2010/08/anal ysis-gathering-storm.html

]]>
By: edgyinchina http://blogs.reuters.com/great-debate/2010/08/17/stocks-from-venus-bonds-from-mars/#comment-31420 Wed, 18 Aug 2010 00:56:37 +0000 http://blogs.reuters.com/great-debate/?p=7794#comment-31420 including you, Mr. Saft…..

]]>
By: Christian67 http://blogs.reuters.com/great-debate/2010/08/17/stocks-from-venus-bonds-from-mars/#comment-31419 Wed, 18 Aug 2010 00:10:14 +0000 http://blogs.reuters.com/great-debate/?p=7794#comment-31419 who is right bonds or stocks investors? Non of them… Bonds are low yield because China and Fed are buying like crazy… When crazy people are buying even if the price doesn’t make sense bad think will happen (see the house bubble). Stock are cheap because of fear… After the recent lost in the stock market there is a lot of fear! Only if the economy will slip back in recession the stocks price is making sense. Will go economy in recession? Sure! When? in 3 month, 3 years, Who knows?

]]>