Buying Opportunity or Sell Signal?
The S&P downgrade of US treasuries has got to be the financial joke of the year. The bond market responded by driving bond rates lower. Lots of reasons for market sell off, but what's your prognosis? I'm leaning towards buying...
posted by Junk Bonds @ 8/08/2011 12:27:00 PM
3 Comments:
The S&P downgrade was a sidehow just like the debt ceiling theatrics. Many indicators have been pointing to a double dip so I guess these deflationary scares are driving bond rates lower S&P, Moody's, and Fitch be damned!
There is no question about the US' ability to pay it's debts. "their treasury obligations will always be money good, but principle and interest will be repaid with bad money."
Gold is starting to go parabolic. I only wished I had more:)
My wish list would include POT and TransCanada Pipe. Maybe RY again. Stick with blue chips when times are uncertain.
Food and oil aren't getting cheaper especially with the only thing central banks reflexively know what to do - print money! If only they would listen to Krugman; my gold holdings would be rich.
This from the Financial Times:
"Senate to probe S&P Downgrade"
http://www.ft.com/cms/s/0/0fdb749e-c20d-11e0-bc71-00144feabdc0.html#axzz1UUYAWSbS
This is rich!
There's a Fed meeting tomorrow. I'm buying oil with both fists if they roll out QE3! Otherwise I don't see a catalyst to stem the bleeding.
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