Your Almost Daily Bit of Wall Street Wit & Wisdom

Obvious Man

Obvious Man, from Wiley Miller’s Non Sequitur comic strip h/t gocomics.com, Andrews McMeel Publishing

“This is the greatest non sequitur in finance.”
— Jim Grant, editor of Grant’s Interest Rate Observer

The venerable Mr. Grant is referring to bonds priced to yield less than zero.

Deutsche Bank data shows negative yielding debt has topped $15 trillion, representing 25% of all outstanding bonds.

Negative interest rates are not good. They reflect and forecast trouble.  They have serious consequences for investors and sovereign nations.

Who would buy negative yielding bonds?  See the Greater Fool Theory.

Don’t be a fool and don’t be cruel.  Spread some kindness today.

Best regards,

Steve

 

 

Your Almost Daily Bit of Wall Street Wit & Wisdom

“What protectionism teaches us, is to do to ourselves in time of peace what our enemies seek to do to us in time of war.”
— Henry George, American 19th century political economist

Overnight and this morning, markets are exuding a whiff of panic over an escalation of the US/China trade war.

Trump’s tariffs, negative bond yields in Europe, the spreading of deteriorating economic conditions, and geopolitical tensions boiling all add to uncertainty.

With two more senseless US mass shootings and ahead of a likely violent crackdown coming to quell protests in Hong Kong, we hope for a day when sensibility and kindness hold sway on political leadership to get them to stop the madness.

50 years removed from Woodstock, we sure could use some of that Peace and Love.

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

Trickle

Trickle by vvvracer h/t Flickr

“American workers are struggling in large part because they are underpaid—and they are underpaid because 40 years of trickle-down policies have rigged the economy in favor of wealthy people like me.  Americans are more highly educated than ever before, but despite that, and despite nearly record-low unemployment, most American workers—at all levels of educational attainment—have seen little if any wage growth since 2000.”
— Nick Hanauer

Your Daily Bit of Wall Street Wit & Wisdom

chaos

Chaos, h/t thenewstack.io

“Our soul is a vast panorama.  There is room for so much in us at the same time: Love and treachery, faith and faithlessness, adoration of one person and longing for another, or for several others.  We try to bring order into ourselves as best we can, but this order is, after all, something artificial.  Our natural state is chaos.”
— Arthur Schnitzler

This quote can be descriptive of economic data and markets.  Grasping their chaotic nature can help in wading through information overflow to get to the heart of the matter.

Enjoy the rest of your weekend!

Best regards,

Steve