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/biz/ - Business & Finance


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27801697 No.27801697 [Reply] [Original]

It's time to rotate your money out of equities and into cash.
Rising U.S. Treasury yields will strengthen the dollar and spell bad news for the stock market.

>> No.27801779
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27801779

>>27801697
The SPX is flashing multiple sell signals.

>> No.27801900

>>27801697
Not a burger so kinda ignorant, wouldn't cash be bad to move into regardless because of inflating dollar? Also why does what you've said affect stocks, do you believe it will affect crypto at all?

>> No.27802310

>>27801900
Higher yields attract investment capital from investors abroad seeking higher returns on bonds and interest-rate products. Since the demand for the greenback is higher, its value increases relative to nations offering lower interest rates

Crypto is a speculative asset, so tends to perform better when there is bullish sentiment. That being said, I think BTC will outperform relative to the broader market since many investors treat it as a SoV.

>> No.27802537

>>27801900
Also, rising inflation is not a problem. The Fed is actually targeting a higher inflation rate because they fear the U.S. economy could undergo Japanification, ie. fall into a deflationary spiral.

>> No.27802686

>>27802310
So foreign exchange rates are likely to suffer in relation to usd then? I'm mostly in crypto so it looks like this won't affect me for the most part, only equity I hold is ARKG atm

>> No.27802935

>>27802686
Yes exactly.
Crypto should be fine as long as there isn't another liquidity crisis.
The growing distrust in traditional financial institutions is a pretty solid bull case for DeFi.

>> No.27802954

>>27801697
Trade debt notes for physical silver . It is the true path to glory .

>> No.27803025

>>27802537
this is literally the dumbest fud I've ever read.

>> No.27803114

>>27803025
fed would raise interest rates if they were worried about inflation. they don't count asset inflation and ivy league educations as part of CPI

>> No.27803120

>>27803025
Nice rebuttal

>> No.27803124
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27803124

>>27801697
Is this the yield inversion people talk about?

I sold out of my index fund I've been holding for many years and I'm in cash for a while until p/e multiples come down.

>> No.27803336
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27803336

>>27803124
The yield curve shows several yields to maturity or interest rates across different contract lengths for U.S. Treasury bonds.
I agree though, the market is overvalued right now. Pic related.

>> No.27803487

>>27801900
>inflating dollar
it's all opportunity cost anyway, the dollar is inflating so you stay in stocks but stocks correct 30% like in march, or crypto does an 85% total correction and some idiot holds all the way to the bottom.
well that loss is more than whatever inflation loss is 1%/2%.
yes it's important to be ahead of the curve, but it's more important to protect your capital than to be spooked thinking the USD hyperinflation scenario will hit tomorrow instantly without warning.

>> No.27803944
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27803944

>>27802935
Gotcha, thanks for the spoonfeed OP
>>27803487
I'm keeping my eye on the overall crypto sentiment, I wasn't around for 2017/18 but from reading history it seems to me like we're somewhere around mid 2017