Switzerland issued bonds today at a negative yield

[JohnnyBeeDawg]

A buyer PAYS 0.55% for the privilege of owning those fine financial instruments. Hold to maturity, and you're guaranteed to lose money.

That's the level of fear that exists. People willing to lose money...guaranteed...in exchange for "safety." Meanwhile, cash balances continue to climb to more record highs.

Deflation continues in the Commie economies. Lots of opportunity out there if one is greedy when the world is fearful.

 

[BullochDawg]

D,JD**

**

 

[JudgeLarryDawg]

Automatic margin calls? Seriously, have to purchase in a margin account?

Think I'll stick with William Devane.

This post was edited on 4/8 10:31 AM by JudgeLarryDawg

 

[JC-DAWG83]

Are they hoping to get money from Greece or Italy? I'm having a...

hard time imagining who the buyer of those bonds would be.

 

[ClyoDawg]

Moonbat

.

 

[Concourse E]

seems like a currency play - I think they are buying the

Swiss currency, with a small transaction fee (i.e. the negative yield). The thought being the other currencies being devalued against the Swiss Franc due to the excessive fiscal issues by the EU and the USDOT.

I can't say it is an attractive investment, but that has to be the appeal.

I've been sitting on a little cash for a while, not really sure what to do with it, because it seems like both the stock market and bond market are going to lose value when the inevitable interest rate hikes come. Best investment now seems to be an inflation hedge that hasn't already been bidded up (i.e. not gold). Maybe raw land or some other type of real estate investment.

 

[MusicCityDawg]

Most likely, the Euro has been sliding against the Franc for a solid month

the pair has fallen from a high of 1.075 in March to 1.043 currently after rebounding off a low of 0.97. Apparently they expect that trend to continue.

Back in January the Euro was at 1.20 against the Franc.



This post was edited on 4/8 11:49 AM by MusicCityDawg