I read Barron's while eating my scrambled eggs [ organic, high omega-3 eggs from happy cage-free chickens with sunlit porches hehehe ;-) ]. NYSE short interest hit a new record high in June. Barron' Intermediate grade bond index was 7.25%, up 2 bps for the week. From Saturday's WSJ, ML's High Yield 100 index was 7.43% up 13 bps for the week. Its spread over the 10 year Treasury widened to 229 bps. I think that spread was about 205 a couple week ago, from memory. The BS [sic] piranhas getting chewed up some this week has caused some pullbacks in the high yield markets. I remember hearing that a considerable amount of money was pulled from high yield bond funds recently, too. And new deals had to cut the optional "PIK" terms [PIK = payment in kind, giving more bonds instead of cash for interest - a sign of froth and excess leverage]
All this is a necessary & timely correction of the froth that I wrote about recently - those insane spreads & terms for high yield debt. So I'm sure the bears will say the end of the world is coming. But it's not. Unemployment is low, Asia is strong, inflation is falling and the economy is growing at moderate rate.
The Fed meeting this week "might" have a bullish surprise, viz. they "might" drop or reduce the inflation bias. They has several months of data now for both the PCE and the CPI of falling core year-over-year inflation. The lasted numbers were in the comfort zone. I don't really expect the surprise this month, but it's possible.
It's a bull market. Use time diversification and rebalancing in your "Krypto Fund". Find good stocks for your "Alpha Fund" that can grow.
PS: I'll be driving to Ohio on Monday so will not be posting.
About Me
- Bunkerman
- I have a pioneer mentality. My wife & I live in the woods - neighbors aren't visible except slightly in winter. Our "bunker" - hehe, really a fine home & barn - has plenty of security. We have four dogs: Krypto (age 9, Kelpie), Ava (age 13, Rat Terrier), Sky (Kelpie, age 5) and Lucky Star (age 1, kelpie). I don't take crap from anyone anymore, having enough resources & gear stocked up to survive in any circumstance. I have three degrees from Harvard including a Ph. D. in a physical science, and an MS in Management from MIT. I worked as an investment banker for about 25 years, mainly in secured finance, at three major Wall Street firms and for the last 17 years with my partners at our own firm. I'm semi-retired now, managing some private corporations and business interests and doing my own trading & investing. This is not to boast, but to give you an idea I know a little about some subjects from experience. The photo is my 1943 M16 half-track which I am restoring. These armored vehicles were ubiquitous in the US Army in World War II and Korea. It's driveable.
52 comments:
USA 2 Mexico 1. one of the best matches ive seen from the usa in yrs. even beasely looked gud, until he blew an open net with about 5 minutes to go. open net, 5 yrs out, an 8 yr old shud make that.
they played at soldier field in chicago yet mexico had more fans. games like this shud get soccer fans more excited about the game. i know its not as exciting as watching 40 cars drive in a circle for 500 miles, but its still the most popular sport in the world. highlites coming up on espn, in 5 minutes
real estate market just continues to nose dive across the state. many foreclosure sales signs popping up now, thats new.
but i think the fed knows the CPI is stupid. again the higher natural gas goes, the lower core is gonna go. i suppose if we continue this no hurricane stuff natural gas will splat, headline will go down and core will go up, then what?
wathced lil bush again, gave it a 2nd chance. actually it was pretty funny after the first 5 minutes. i like the song "the decider" when lil bush starts a nuclear holocuast. darth vader as lil chenney father is pretty funny too
;-)
the song was funny.....rest was pretty lame
the drug dealer in jonfromcinci is hilarious....that show is wild!!
i haven't seen many foreclosure signs around here......but i'm not lookin
i am reading though that the condo's are not selling....oversupply in ftlauderdale
abelson had a pretty funny comment about the CPI in barrons this week......i think he agrees with you
abelson? crap, i must be wrong. man espn giving no coverage to the USA soccer win of the gold cup. i was working out when i stumbled onto the begining of the game. i didnt stop running till it was over. 90 minutes went by fast. constant end to end action. game shud have been 5 to 3 but both goalies just played out of thier minds. plus the ref was very gud, he let them play, kept the pace fast, but called a tight game.
saw a brutal head on head collision, the american didnt return. the mexican was carted off after the game. he played with a concussion. that was brutal hit. they went up for the header and head butted each other solid
silver broke its uptrend. put a wish buy in at 12.50
hmmmm a punk bullish open. i bet we go lower today but not with my money
the bears must be reading the bunkerman as they have certainly covered a good chuck as reflected in the put call ratio. should make for some tougher trading ie buying dips for lighting fast sell off snape backs. luv the snapper.
those bear claws catch lotsa fresh salmon. is there any beer left? :-)
lol...yep lot-o-fish and little beer...life is good.
notice the drug dealer and the doctor are from Deadwood on Cincy?.....welocome back Frost...hope ya gave the glory to the fish..lol
everyone looking for end of Q paint job...for my money taking some sugar makes much more sense...Q3 the time frame with the greatest risk level, obviously, no need to be a hero unless one has yet to make thier year, those limp noodles with be bear chow.
Hunting last year...fishing now...is that how you get your kicks frosty? That's so disgusting and disgraceful.
LORD BUD KNOWS ALL.....lmao
even jesus ate fish. lol
Did jesus do bong hits?
LMAO....oh bub, we all fear what we don't understand, you must sit around and shake like a dog crapping peach seeds on a daily basis....sportsman are hardly a reason for concern, you can take that one off your list of paranoid delucsions.
WASHINGTON - The Supreme Court tightened limits on student speech Monday, ruling against a high school student and his 14-foot-long "Bong Hits 4 Jesus" banner.
Schools may prohibit student expression that can be interpreted as advocating drug use, Chief Justice John Roberts wrote for the court in a 5-4 ruling.
Come on mern....i know that ruling disgusts you. LOlolol
well..I dont know how sporting it is Frost...lol
Eating the opponent has nothing to do with sportsmanship...imo..lmaoo
Roflmao...'sportsman'
kinda diggin the J from Cincy
so rest of the world was down and we are ramping... may not last long
What's your next 'sporting' vacation? Hot-dog eating contest. LOL
Canadian baby seal hunt....tastes like chicken...and they dont feel a thing after the first 10 whacks...lmao
lets see bud. jesus was the son of god and god made the world in 7 days. he did make weed, no?
y wud he make it if he didnt want us to use it??????
instead of dropping bombs in afghanistan and iraq we shud be dropping tons of the best dro america cud grow. those freaks wud get so high they wud forget y they pissed, eat MCD, get fat and roll over.
just throwing it out there
not sporting? fishing the mouth of the columbia river if fraught with risk, it is the most dangerous body of water in the world to navigate, people die all the time.
how would you like to take a bird hunting trip with lil' dick? tell me there is no danger...lol
mother nature can be a cruel beast, sportsman suffer serious injury or worse constantly.
frosty u ever catch a big salmon?
frosty ever catch a big salmon, ON WEED?
(half baked, a true stoner classic)
:-)
watched a discovery marathon called "the deadliest catch". king crabbing up north. ill guarantee u one thing the show doesnt show. all the weed they smoke on those boats. that show is gud
"fishing the mouth of the columbia river if fraught with risk, it is the most dangerous body of water in the world to navigate,"
Arrrrrrg....shiver me timbers
anyone have any money making ideas this week?
I'm a bit clueless frosty. I kind of agree with maverick.....but am too scared to short in any meaningful way.
EMU new on for me at $15...looks like this dip should be bought....a stop run at the 50 day would not be a surprise...I just luv yellow cake.
I luv yellow cake...ugh. If you luv death and destruction so much how come you not in the service? Or did you also serve in the alabama national guard?....Lmaooooooo
W and frosty were probably bunk-mates.
bunk mates LMAOOOOOO....W and I are both vietnam era vets, ivy leauge C students and both luv 10 step programs....but bunk mates? thought you would take a little more liberal view, at least don't ask don't tell....gesh, another parinoid delusion induced panic attack and it's only lunch time.
I picked a good day to return, bud having ran out of meds and all...lol
rofl...'run out of meds'
mern ie: nat gas....last year we recorded a multi-year top in inventories, no big surprise that prices were depressed similar to 1995,98, 01 and 04. should the historial pattern repeat we would see gas exceed last winters high of $9.05 the sceond half of this year by more than 25% with a target some where around $12.50.
bud is a weekend warrior. thats when he smokes cracks, eats ex and goes to raves, with hookers.
u shud see how many pacifers he has, plus many glow sticks.
i cant believe he out lived rob beck
Roflmao...'raves' 'glow sticks'
Uh...Frosty....you're a drunk. You don't remember last week....let alone 95 or 98 or 01....lamaooooooooooooooo
being a drunk used to be cool, then paris, brittany and linsday ruined it for all us classy drunks
;-)
There was a great SNL skit about that mern.....will ferreell as an old drunk perter o'toole...Lololol
Wonder if Bunkerman drove to Ohio with loaded pistols. I bet he taught his mom how to operate a firearm too.
rofl......I think you need a special license for that..crossing state lines....plus concealed weapon
Im sure Pacman or Tank would know...lmao
bud, im not smart enuff to make that up. i was thinking of the very same bit on SNL
lol
i cant believe the bears cut tank
the eagles shud take a flyer on him and just hire and freaking limo driver with the contract
HANK THE TANK...HANK THE TANK!!!....You're my boy blue!!!
I made it. 13 hours driving. ugh. Lots of traffic. No one is saving gas.
Uh Frosty, I`ve been pounding the table on GOOG for a while, including Friday I think.
No, spin, there`s a federal law overriding all state laws that one can carry firearms unloaded locked in the trunk from one state to another provided one can legally possess them in the beginning and ending states. NOt saying I did that ...;-)
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