Too Much Bullishness in a Period of Beariness
By Investment Moats  •  November 7, 2023
The long-term bond yields have been climbing which creates an overhang on longer duration bond prices. The 20 and 30-year Treasury bond price chart at this point look like any equity price chart that you do not wish to own. And since the 10-year treasury is the discount rate used to value other risk assets such as stocks, the prices have come down. With Treasury bills and cash yielding so much, you can’t find many people wanting to invest in stocks or very cautious to take on longer data bonds. Judging by equity risk premium, or the spread of dividend yield over 10-year government bonds, it doesn’t make any sense to own equities or REITS. Yet I wonder whether now is the time to think in terms of the commodities market. When supply and demand dynamics is favorable that is where the prices start to turn down and when supply...
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...

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