muses of the moment

September 30, 2014

Pimco

Filed under: Bailout Nation, Global Debt, Odds 'n ends, The Federal Reserve — totallygroovygirlfriday @ 12:48 pm

groovygirl is keeping an eye on the outflow of funds from PIMCO. 12% now? Click here.

The number is not necessarily the issue. The issue is why pull money just because Gross left? Doesn’t sound right. Something else happening. And if it’s happening at PIMCO, is it a bond market problem. The government can solve a PIMCO problem. The government can not solve a systemic bond market problem. What is it? Don’t know. Have to wait and see. Is this a global issue? And where are the funds going? Stocks? Cash? Overseas?

 

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September 21, 2014

Yes, gold is getting hammered.

Filed under: Long term investing — totallygroovygirlfriday @ 7:39 am

Yep, gold is getting hammered, but we are still in the long term trend channel upward.

The more interesting thing is the continued denial by the powers-that-be that we “out of a recession”. Click here. This chart tells a different story. This chart says someone moved the Middle Class’s cheese and didn’t tell them about it. Another problem: that chart is the norm for first world countries, not just the US. And here is a short list of reasons.

Side note: groovygirl doesn’t trade gold anymore. She buys at the lows and holds long-term. The other investment class she is exploring is real estate. Interesting stuff. Looks like interest rates will start to go up in about 12 months or so. Not sure if they will do that before the election or not.¬† They may “test the waters” before the election to see the impact on the market.

Higher interest rates have an impact on new buys, of course, but the real killer is refinances in commercial real estate. That’s when rates go up, but we may not see the true consequences for a few years in commercial and real estate investing (which is where the real money is in real estate).

If they don’t move rates higher, we still have this same problem from the last turn down:

And as gg said before, it doesn’t matter how low interest rates are, if you have no job or only part-time work, or in commercial real estate, low revenue; you can’t afford any monthly payment or save for a future down payment. Period.

It’s all a very interesting show to watch if nothing else.

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