https://web.archive.org/web/20160324133 ... l-returns/
Look at the year 1994. What happened? Shouldn't the components move in different directions for diversification to work? And how can cash have negative returns?
What happened in 1994 when all 4 components of PP went negative?
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dutchtraffic
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Re: What happened in 1994 when all 4 components of PP went negative?
When the system is shaking (like now), combined with CBs paper-slamming gold down, everything will go down.helpme wrote: https://web.archive.org/web/20160324133 ... l-returns/
Look at the year 1994. What happened? Shouldn't the components move in different directions for diversification to work? And how can cash have negative returns?
All components can go down together for the next 50 years, why not? We just made this shit up, there is no law of nature that says they must move in opposite directions.
Re: What happened in 1994 when all 4 components of PP went negative?
That's the truth.dutchtraffic wrote: We just made this **** up, there is no law of nature that says they must move in opposite directions.
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MachineGhost
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Re: What happened in 1994 when all 4 components of PP went negative?
Fed raised rates in 1994 and caused a Bond Market Panic. Orange County also filed for bankruptcy subsequently. So it wsa a tight money scenario like 1981 and this year.helpme wrote: https://web.archive.org/web/20160324133 ... l-returns/
Look at the year 1994. What happened? Shouldn't the components move in different directions for diversification to work? And how can cash have negative returns?
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
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mathjak107
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Re: What happened in 1994 when all 4 components of PP went negative?
1994 was the only year since the 1980's that when the fed raised interst rates more than 1% intermediate term bonds had a loss .
Re: What happened in 1994 when all 4 components of PP went negative?
How is this year a tight money scenario with rates still at zero?
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mathjak107
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Re: What happened in 1994 when all 4 components of PP went negative?
it isn't just the opposite in fact .
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MachineGhost
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Re: What happened in 1994 when all 4 components of PP went negative?
Expectations.
We're in a year like 1994, 1981 and 1969.
We're in a year like 1994, 1981 and 1969.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!