Bonds when will they be 'normal' again?

iro

Voyager2002 wrote: »

Do you think this is true of all corporate bonds, and of sovereign debt that is below investment grade?

I don't use bonds and don't have the time and energy to learn how to do so, but it seems plausible that the reward for taking on a degree of risk greater than that tolerated by insurance companies and the like is likely to be very great.

A good point, whereas Quantitative easing has distorted investment grade Sovereign debt hasit had any impact on emerging market debt?

Are there any IT or OEICS with a diversified exposure?

EarthBoy

iro wrote: »

Chosen deliberately

https://en.wikipedia.org/wiki/Return_to_normalcy

Thank you for your interest.

"Return to normalcy, a return to the way of life before World War I"

Are you really looking that far back?

iro

EarthBoy wrote: »

"Return to normalcy, a return to the way of life before World War I"

Are you really looking that far back?

Having a very long term perspective on investment always helps.

My I recommend

https://en.wikipedia.org/wiki/A_Monetary_History_of_the_United_States

It is an excellent read and a reminder of why the printing of money is just another form of taxation.

Anything else I can help you with?

bowlhead99

iro wrote: »

Anything else I can help you with?

I doubt it

le_loup

iro wrote: »

Chosen deliberately

https://en.wikipedia.org/wiki/Return_to_normalcy

Thank you for your interest.

This message seems to be off topic. I shall report it.

le_loup

iro wrote: »

Having a very long term perspective on investment always helps.

My I recommend

https://en.wikipedia.org/wiki/A_Monetary_History_of_the_United_States

It is an excellent read and a reminder of why the printing of money is just another form of taxation.

Anything else I can help you with?

............ and this.

iro

please feel free, although in both references the impact of a low inflationary, benign environment (pre ww1) allowed those with wealth to live off the coupon reciepts of fixed interest.

So arguably both are in fact relevant.

Do you have a view on whether bonds offer good value or when they might?

System

Can governments afford higher yielding bondage? Wasn't that why we had qe, to keep yield down on governments behalf? If so I imagine hypothetically we'd have qe all the way into double digit inflation.

iro

MatthewAinsworth wrote: »

Can governments afford higher yielding bondage? Wasn't that why we had qe, to keep yield down on governments behalf? If so I imagine hypothetically we'd have qe all the way into double digit inflation.

Yes agreed, I would have liked a period of unwinding the current asset purchases as this would have reduced some of the distributive issues raised by QE, however this has not happened and given rates are rising unlikely to happen.

le_loup

MatthewAinsworth wrote: »

Can governments afford higher yielding bondage?

Oh! I say!