With looming recession the talk of town, the Market starts to ramp up.
What ?! This time different lah .... why ? Because this means interest rate won't be going up ... ( wah lao ... I just signed up fixed rate loan for that ..... @#%$@#%)
Who benefits most from it ? Reits and Trust. Which I still find it ironical because I have been harping rising rate won't affect them much either. Not that I am complaining much. New high for my portfolio with .... "silly bonds". I could see 7% mark ...
Who suffers ? Banks ... stays flat. This doesn't sound like much suffering ....
What I miss today. Koufu .... was deliberating for a buy ... just last weekend ... damn ...
Cory
2019-0326
P.S. Anyone has advise for fixing up ABC Baby Stroller Design ...
The actual recession & breakdown of markets normally occurs many many months after the initial inversion e.g. last time the initial yield inversions took place in Dec 2005 / early 2006.
ReplyDeleteBy the time stocks go into freefall week after week & retrenchments are making frontpage news, everybody will have forgotten about yield curve inversion. :P
In the past as far as I have the impression of Green Span which he let me remember is that he practises boom and bust Fed strategy. This one I say one. What this means is he will purposely raise rate till economy go bust into recession. And then he will lower rates till recover.... and the cycle repeat. bloody joker.
DeleteHaha, Greenspan learnt from his predecessors. The boom-bust inflation-monetary policy cycle became more apparent after WW2.
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