Down goes the Dow

Another good article filled with information from the EVIL DAVID STOCKMAN WEBSITE:

http://davidstockmanscontracorner.com/giant-us-pension-fund-to-sell-12-of-stocks-in-fear-of-another-downturn/

Brought to You by Igy

Fact: 47% of recent posts have been by GOI.

Jeez dude, like hearing yourself talk much?

K5 detector wrote:

Nice to Know wrote:

Nice to see censorship of facts that put Israel in a true light are still being censored on letsrun.com.

What does it say about the strength of your argument is you need to censor everything that does not conform?

What censorship was that, K5?

Note that they took my post down. This is called censorship. But they missed K5 detectors reply which repeats my post.

100% censorship on Letsrun when it comes to facts that run counter to the pro Israel propaganda.

In many cases, what you call "facts" are actually delusions of a disturbed mind. Just because something is printed on a hate mangers web site doesn't mean it's true.

 We all know this will not remain posted for long but I did want to compare what I do -- post facts from very reputable sources -- with what you do -- fact free ad hominems:

"The Israeli colonies are an American problem in a whole new way. Nearly one out of six settlers in the West Bank is an American. Haaretz broke the story. Oxford scholar Sara Yael Hirschhorn says Americans are starkly overrepresented among West Bank settlers: Roughly 60,000 American Jews live in West Bank settlements, where they account for 15 percent of the settler population, according to figures revealed Thursday by an Oxford University scholar and expert on this population. Newsweek’s Jack Moore reports the American policy angle: Israeli settlement watchdog Peace Now said that the new figures revealed that the settlement enterprise in the West Bank was not only an internal issue but “an international problem.” “Unfortunately, while the Obama administration has been persistently vocal against settlement developments, some 60,000 American citizens are taking an active part in an attempt to make the two state solution impossible,” says Anat Ben Nun, Peace Now’s director of development and external relations. The study leaves out all the settlers in East Jerusalem: 200,000 of them three years ago, per the United Nations. -

I came under attack several months back for having the gall to suggest that high quality bonds may be a better asset class than stocks. I hold by that view, but would lean to higher proportion of short term high quality bonds with a percentage in intermediate high quality as a market hedge.

Year-To-Date Performance as of 9/3/2015 (includes dividend and interest)

DOW -6.52%

S&P 500 -3.89%

10 YR Treasury +1.71%

Igy

How would that be a hedge? Do you think rates will go DOWN?!

Ghost of Igloi wrote:

I came under attack several months back for having the gall to suggest...

Ummm...self-aggrandize much?

Ghost of Igloi wrote:

I came under attack several months back for having the gall to suggest that high quality bonds may be a better asset class than stocks.

And I came under attack from you yesterday for respectfully disagreeing with you.

Ghost of Igloi wrote:

Yes you are ignorant and foolish as well.

Sorry if you are insulted. Go back to your studying of investments since you failed the first exam.

Igy

Say,

Bonds move both on interest rates and fund flows. In times of poor market performance large money managers need a place to park large amounts of money and Treasury bonds become that place. Rising demand results in higher prices.

Igy

Just Asking wrote:

Ummm...self-aggrandize much?

Speak English much?

Fax,

"I accept your apology."

Igy

Just,

Some responses to my earlier bonds comments for the record:

“No one knows what is going to happen. We do know that right now, stocks blow away bonds.”

Read more:

http://www.letsrun.com/forum/flat_read.php?thread=5369837&page=259#ixzz3knGwIZcY

“What gives me cause for concern is the bond market that you think we should be investing in. Anybody with at least half a brain can see the bubble there. That's the real reason that stocks are currently vastly superior to bonds.”

Read more:

http://www.letsrun.com/forum/flat_read.php?thread=5369837&page=260#ixzz3knHJ6Agk

“Your tunnel vision is why you are so clueless. Try to be more objective and you'll learn something.”

Read more:

http://www.letsrun.com/forum/flat_read.php?thread=5369837&page=260#ixzz3knHUnXDG

“You remind me of Debbie Downer.”

Igy

Ghost of Igloi wrote:

Fax,

"I accept your apology."

Igy

Indeed I did accept your apology after your first round of thoughtlessness. I thought I was doing the adult thing. But then you doubled down on the insults with what I quoted above. Did you think my apology was good for your past and future immaturity?

It's quite obvious that you are not a nice person. You and I are done. Good day.

Fax,

I am actually a nice person and I admit I was a little hard on you. And you are obviously not stupid, but I do believe you have some learning to do on stock valuation methodologies. You frankly blew off my response to you which was both factual and accurate when you said: "I agree that energy is overvalued, but most of everything else is not. "

Read more:

http://www.letsrun.com/forum/flat_read.php?thread=5369837&page=321#ixzz3knRVc8Rw

That statement is way off the mark, to the point it makes me a little testy.

Anyway enjoy your Labor Day weekend.

Igy

Ghost of Igloi wrote:

Say,

Bonds move both on interest rates and fund flows. In times of poor market performance large money managers need a place to park large amounts of money and Treasury bonds become that place. Rising demand results in higher prices.

Igy

Isn't it true that bond prices and yields move in opposite directions? Do I understand correctly that you believe a higher price trumps a lower yield?

Say,

Yes, that is correct. Again, the point is that in a stock market sell-off funds must find a home, and generally that is in Treasury bonds. Think of it this way, for the average investor they can park money in money market or CDs. For large money managers that is not an option, so the funds flow to the Treasury market.

That said, I am saying this is a hedge. At the start of the last two downturns the 10 Year Treasury stood in the 5% range. So as the Federal Reserve cut interest rates and the stock market declined, Treasury bonds gained from both the drop in interest rates and fund flows. In the current environment we are starting at a 2.15% yield on the 10 Year Treasury Bond so there is markedly less upside via interest rate drops and risk it may move the other direction. Funnily enough the debate among Federal Reserve members is whether or not to raise rates to give the committee ammunition in the future.

Lastly, the vast majority of investors assume that rising interest rates will continue into the future. However, the German 10 Year Bund sits at 0.707% and the Japan 10 Year JGB yield 0.391%. So there is an argument that we are in a deflationary environment and Treasury bond yields will fall.

Igy

Me Aussi wrote:

Just Asking wrote:

Ummm...self-aggrandize much?

Speak English much?

OK, so you are either unimaginably stupid or just new here.

I guess I should give you the benefit of the doubt, Newbie. Welcome to LRC.

He's not new here. It's just Igy using a different handle in an attempt to avoid getting bitch slapped again.