Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
 Best Of MacroBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of MacroBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd

The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Personal Finance / Macroeconomic Trends & Risks
Unthreaded | Threaded | Whole Thread (11) |
Author: InParadise ✧☼  😊 😞
Number: of 4460 
Subject: Re: Control Panel: Market front-running the Fed agai
Date: 09/22/25 4:39 AM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 4
Savers who like to keep significant liquidity (cash and short-term Treasuries) in banks and money markets will see interest income decline. We have already been through this twice since 2008. It's worth considering an extended bond ladder. If interest rates drop the value of the existing bonds will increase and they can be sold. It's normal for bond yields to fall during a recession which drives bond prices up at the same time that stock prices drop.

The ability to sell the bonds will depend on them continuing to provide a flight to safety. That perception of safety depends on continued faith in the government, a government whose leader you recently referred to as having the style of The Godfather. IMO it's time to re-evaluate just how safe an investment US Gov't bonds are, as well as other truisms such as when rates go down employment goes up and the economy improves. Base assumptions for these truisms may no longer be the same. A paradigm shift may be underway. Be careful of assuming bonds are safe.

IP

Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to InParadise here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 4,453 posts about Macroeconomic Trends & Risks. The article-length ones it recommended most:
AI Tarpits · 36 recs · 2026
End of an era - profit slowdown · 36 recs · 2023
Control Panel: Trend changes in 2026 · 34 recs · 2026
From the Oregon Bay Area (a blogger) · 33 recs · 2025
Lerner Symmetry Theorem · 32 recs · 2025
Unthreaded | Threaded | Whole Thread (11) |


Announcements
Macroeconomic Trends & Risks FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Ticker or Board Name Author

Best Of Macro | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community