Real Estate Newsletter Articles this Week: Existing-Home Sales Increased to
4.15 million SAAR in November
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At the Calculated Risk Real Estate Newsletter this week:
[image: Existing Home Sales]*Click on graph for larger image.*
• NAR: Existing-Home Sales Increase...
11 hours ago
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8 comments:
As a side note, the heckling of Forbes has produced dividends.
Forbes: Worried About Inflation? TIPS Aren’t The Answer
One remaining rule: Under no circumstances go beyond 10 years.
Investors who ignored the advice of Forbes did quite well in hindsight. The yield on the 30-year TIPS has dropped roughly 0.3% since that was written on July 13th. For those doing the math at home, that's 0.3% per year extra each year for 30 years. It tends to add up.
Apparently the doubling of real rates has been poned until further notice. (It's an inside joke for some readers based on the word postponed.)
The problem is, Cutwater’s research shows that TIPS have zero correlation to inflation.
Why do people pay to read Forbes when they claim that inflation linked treasuries have zero correlation to inflation? Anyone? I'm open to theories.
Got gold? OOPS, sorry! ;-)
Why do people pay to read Forbes when they claim that inflation linked treasuries have zero correlation to inflation?
Maybe they are talking about chained inflation, GDP deflator, PCE deflator, core inflation, or the billion prices project inflation. There are so many!
Lots of stock carnage today. I hold some corporate bonds, and they are benefiting from the yield crush, but some more than others. Everyone was looking for the relief rally that only lasted about an hour on Monday. Poof, it's gone.
This song makes me think of Tom Cruise....
tj and the bear,
Got 30 year TIPS? Good grief. Talk about a rally. I'm up over 25% on the long-term bonds I bought back in February. No joke.
It's almost like the market thinks long-term real returns are going to suck for the next 30 years.
Mr Slippery,
Everyone was looking for the relief rally that only lasted about an hour on Monday. Poof, it's gone.
All the media attention was directed at the "bond crisis" (even as bonds were appreciating).
Now the media attention finally sees that something else was going on.
Doesn't that just figure?
GYSC,
Well, we are apparently heading to the Danger Zone.
Wow! Check this out.
S&P 500 Falls Toward Danger Zone Support Level
Danger Zone! It really is a Tom Cruise moment.
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