Green Book September 1982
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Featured Articles
Are Bonds Too Popular Now?
Dedicated portfolios, TIGR types, long-term bond buy and holders and bond traders soaking up the government financing like so many sponges. For long-term T-Bonds at least, the demand may be greater than the supply for a while, creating a premium situation. It’s hard to believe a T-Bond could become an investment rarity, but these are strange times.
Inside the Stock Market
The S&P 500 futures hedge discussed last month remains because even though chances are the summer lows will stand as the bear market bottom, a correcting decline of 80-100 DJIA points down from the Aug-Sept peaks is expected. This may happen very soon. The recent action of gold is ominous and one or two 120 million+ downside days would not surprise.
View from the North Country
Merrill Lynch was first but the rush is on, stripping existing T-Bonds of their coupons, repackaging and selling coupons and principal separately. While perhaps priced too high for sharp pencil pushers, to us they look like a very good investment. Corporate “zeros” should, however, be viewed very cautiously.
Table of Contents
Stock Market
Macro Monitor
Are Bonds Too Popular Now?
Dedicated portfolios, TIGR types, long-term bond buy and holders and bond traders soaking up the government financing like so many sponges. For long-term T-Bonds at least, the demand may be greater than the supply for a while, creating a premium situation. It’s hard to believe a T-Bond could become an investment rarity, but these are strange times.
Inside the Stock Market
The S&P 500 futures hedge discussed last month remains because even though chances are the summer lows will stand as the bear market bottom, a correcting decline of 80-100 DJIA points down from the Aug-Sept peaks is expected. This may happen very soon. The recent action of gold is ominous and one or two 120 million+ downside days would not surprise.
View from the North Country
Merrill Lynch was first but the rush is on, stripping existing T-Bonds of their coupons, repackaging and selling coupons and principal separately. While perhaps priced too high for sharp pencil pushers, to us they look like a very good investment. Corporate “zeros” should, however, be viewed very cautiously.