Why not just keep cash instead of investing in negative rate yielding bonds?

Discussion of the Bond portion of the Permanent Portfolio

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economicsjunkie
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Why not just keep cash instead of investing in negative rate yielding bonds?

Post by economicsjunkie »

This post has some nice illustrations to answer this question:

http://mishtalk.com/2016/03/15/reader-a ... e-returns/
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Kriegsspiel
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Re: Why not just keep cash instead of investing in negative rate yielding bonds?

Post by Kriegsspiel »

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.
economicsjunkie
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Re: Why not just keep cash instead of investing in negative rate yielding bonds?

Post by economicsjunkie »

Kriegsspiel wrote: Individual Europeans could still buy some gold, if they were reaching for yield. It'd be like 1,000 times less voluminous.
Which is probably happening as well.
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Tortoise
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Re: Why not just keep cash instead of investing in negative rate yielding bonds?

Post by Tortoise »

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.
Kbg
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Re: Why not just keep cash instead of investing in negative rate yielding bonds?

Post by Kbg »

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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dualstow
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Re: Why not just keep cash instead of investing in negative rate yielding bonds?

Post by dualstow »

Tortoise wrote: Shit happens, and I'm covered.
What a funny image that conjures up!  :D
Monstres and tokeninges gert he be-kend, / And wondirs in the air send.
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