Thursday, January 9, 2025

Trump Insanity Risk Premium

Why Bond Yields and Mortgage Rates may keep rising... "Trump Insanity Premium" Thank Heavens I am locked into a 3% mortgage and am in no hurry to move...

https://www.msn.com/.../paul-krugman-thinks.../ar-BB1r7zRT



5 comments:

  1. With the election of Trump, things have changed in basic ways. For investors, the market is more uncertain, information is less reliable. People can lie more because the consequences are fewer. Thing are more uncertain, and I expect the market to compensate for that in a variety of ways.==Hiram

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  2. I had been moving into Bond Funds assuming lower rates were coming.
    I had to reverse that quick once our "Liar in Chief" won. :-O

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  3. We have chosen four years of conflict and instability. That is going to be a drag on the economy and the markets.-Hiram

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  4. Trump is often Babout things because he often takes all sides on an issue. Trump campaigned against inflation, but without ever giving and indication of seriously thinking about the problem. He has issues but not solutions. With respect to inflation, the specifics he advocates, more government spending lower interest rates, tariffs, and tighter immigration policies, whatever their other merits, all tend to raise prices. And of course higher prices are bad for bond prices. --HIram

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  5. I have no idea what is a good investment right now because of that... :-O Risk abounds everywhere.

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