Just because a business's stock price goes up and down more than the market, or another company, doesn't mean it's riskier. Buffett says people who believe this may increase risk by doing stupid things. What stupid things? Holding assets that don't increase purchasing power. These would include: • Cash • Bonds • Treasuries Make sure your assets will meaningfully increase purchasing power over long periods. Let's elaborate more on that. Stocks are much more vo...
whqqq :
Volatility does not represent risk. Every stock will fluctuate. If we decide to hold it for a long time, we should be prepared to accept volatility.
Warren Buffett has put most of Berkshire Hathaway’s cash in short-term United States Treasury bills, now that they offer as much as 3.27% in yields. But while the news does not concern Bitcoin (BTC) directly, it may still be a clue to the downside potential for its price in the short term. Berkshire’s net cash position was $105 billion as of June 30, out of which $75 billion, or 60%, was held in T-bills, up from $58.53...
Currently, the world is facing a phenomenon known as yield curve inversion. The word "yield" is the interest rate of the bonds being issued. The “yield” in yield curve inversion refers to US Treasury Yield, which means the rate that US government is borrowing money. While "curve" refers to the curved line you see when you plot a graph of interest rate vs maturity. This curve will be upward sloping in a healthy economy; more time to return money = more risk. But nobody ...
We are currently facing a phenomenon known as yield curve inversion. What this means? Let’s start by explaining what the yield is, before talking about its inversion. The yield is the interest rate at which bonds are being issued. The “yield” in yield curve inversion refers to the US Treasury Yield, which reflects the effective rate at which the US government is borrowing money. The "curve" refers to the curved line you see when you plot a graph of intrrest rate vs maturi...
$Cboe Interest Rate 10 Year T Note(.TNX.US)$$Dow Jones Industrial Average(.DJI.US)$$Nasdaq Composite Index(.IXIC.US)$$Treasury Yield 30 Years(.TYX.US)$ The nation’s top economic policymaker acknowledged that inflationary pressures are impacting everyday Americans, but doubled down on his view that the hot pace of price increases should abate in time. "We understand the difficulties that high inflation poses for individuals and families, particularly those with limited means to absorb higher prices for essentials such as food and transportation,” Federal Reserve Chairman Jerome Powell said in a press conference Wednesday. Americans have been feeling the impact of rising prices as of late. The Consumer Price Index showed prices rising 5.4% on a year-over-year basis in September (the fastest reading since 2008). But Powell leaned again on the explanation of these pressures as “transitory,” pointing to pandemic-induced materials and labor shortages that have constrained supply chains globally. Powell suggested his deference is to give workers and hiring firms more time to plug the shortfall. Ideally we would see further development of the labor market in a context where there isn't another COVID spike, and then we would be able to see how does participation react in that post-COVID world,” Powell said. Article excerpted from Yahoo.
$Bond ETF(BK2730.US)$$Treasury Yield 30 Years(.TYX.US)$JPMorgan Chase’s chief executive Dimon told Reuters that he had begun to prepare for the possibility of the United States hitting the debt ceiling, but he expected policymakers to find a solution to avoid this “potentially catastrophic” event. Dimon said in an interview that the largest bank in the United States has already begun to make scenario planning on how a possible US credit default will affect repurchase and currency markets, customer contracts, its capital adequacy ratio, and how rating agencies will react. Article excerpted from Reuters Financial Morning Post
The$S&P 500 Index(.SPX.US)$extended its September selloff, with technology shares underperforming economically sensitive companies. The$NASDAQ 100 Index(.NDX.US)$tumbled the most since March. The yield on Treasury 30-year bonds climbed more than 10 basis points. The dollar rallied. Nothing much to say, let's take a look at the indexes: We all know it's coming, the question is: "is it the day"? Show the screenshot of your portfolio in the comment section. I guess the more suffering people we know, the more comfortable we will be.
williamlow85 : Take profit 1st
Ixy The Cat : My prediction: Fed not able to contain rising inflation. Job numbers will be fudged in spite of the slew of layoffs. Rate hikes coming.