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by nl
1494 days ago
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The OP wrote: "If inflation continues and the fed becomes aggressive with hiking, all assets are dead. Bonds will be wrecked, stocks will be wrecked, cash is wrecked, even gold (depending on how aggressively they hike) will be dead because it's actually a really good deal to buy bonds when they yield north of 10% (if we get there)." Reads like they are referring to the Fed. Even if they aren't, US AAA-rated bonds generally track the Fed rate +1% to 1.5%[1]. So corporate bonds at 10% means the Fed rate is 8.5%+. I don't think this is realistic within the next 2 years. [1] https://ycharts.com/indicators/moodys_seasoned_aaa_corporate... |
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