This post has some nice illustrations to answer this question:
http://mishtalk.com/2016/03/15/reader-a ... e-returns/
Why not just keep cash instead of investing in negative rate yielding bonds?
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- Kriegsspiel
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Re: Why not just keep cash instead of investing in negative rate yielding bonds?
Individual Europeans could still buy some gold, if they were reaching for yield. It'd be like 1,000 times less voluminous.
You there, Ephialtes. May you live forever.
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Re: Why not just keep cash instead of investing in negative rate yielding bonds?
Which is probably happening as well.Kriegsspiel wrote: Individual Europeans could still buy some gold, if they were reaching for yield. It'd be like 1,000 times less voluminous.
Re: Why not just keep cash instead of investing in negative rate yielding bonds?
This is why I love being a PP investor. Nonsense like negative interest rates doesn't bother me much, because my portfolio is encased in solid gold. Shit happens, and I'm covered.
Re: Why not just keep cash instead of investing in negative rate yielding bonds?
TLT doing it's job again for the conditions we are in vice the one's people worry about being in...YTD +8.8%.
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Re: Why not just keep cash instead of investing in negative rate yielding bonds?
What a funny image that conjures up!Tortoise wrote: Shit happens, and I'm covered.

Monstres and tokeninges gert he be-kend, / And wondirs in the air send.