| ▲ | PowerElectronix 4 hours ago | |
selling stocks and buying bonds in a recession where interest rates go down (so bonds are priced higher) and expected revenue for most sectors go down is a no brainer. Agree, but there's also the expectation of future debt. A bigger debt means a bigger issuance of bonds, so the new supply-demand equilibrium moves the rates higher as it's the only way to convince investors to allocate more to bonds. Technically, yes, but if you create demand for long term bonds and create supply for short term ones, you'll flatten the yield curve and pay long term yields for short term durations. | ||
| ▲ | timacles 2 hours ago | parent [-] | |
We are in a different phase of Capitalism, real interest rates will be kept low mechanically. Nominal Inflation rate will always be lied about. Bonds holders will lose value by design. The governments and central banks across the world have no other choice. Corporations and big money have robbed our world of capital and are now changing the game to pull up the ladder behind them | ||