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re: BofA now expects 2Q GDP to decline 40%, instead of previous -30% projection.

Posted on 5/22/20 at 12:28 pm to
Posted by lostinbr
Baton Rouge, LA
Member since Oct 2017
9358 posts
Posted on 5/22/20 at 12:28 pm to
quote:

Gold, Silver, Land, RE, Volatility, Private Equity, Commodities and Bonds. There's also a ton of alternative strategies that can boost yields.

But why bother when there are blue chips with 10% dividend yield?

I realize these stocks aren’t where the growth is coming from, but I feel like they kind of create a “floor” for the market, at least until they cut dividends. How low does that dividend yield have to be for people to flock to the other markets you mentioned? 6%? 4%? Hell, RDS is sitting at 4.2% AFTER they cut their dividend for the first time in 75 years.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11100 posts
Posted on 5/22/20 at 1:35 pm to
Fed of SF Presentation

You can just Google it these ideas have been out there for quite a while. There's a strong inverse relationship with yields and credit cycles too I believe. Of course like everything else, there are counter arguments that are valid.
Posted by SEC. 593
Chicago
Member since Aug 2012
4043 posts
Posted on 5/22/20 at 7:50 pm to
I was specifically addressing why the the stock market seems to be disassociated from the current economic situation. None of those options (especially bonds if the market maintains its current status) are able to match current returns, so it keeps perpetuating itself until one of the dominoes falls.
Posted by GenesChin
The Promise Land
Member since Feb 2012
37706 posts
Posted on 5/23/20 at 3:18 pm to
quote:

It makes zero sense why stocks and the real world economy/Great Depression unemployment are in such a disconnect other than the trillions of magic money worked.


It may be an issue limited alternative investment options. If you sold equities, where do you put it? Not like cash is that much better with the Fed basically protecting firms from default


Posted by AU4real35
Member since Jan 2014
16065 posts
Posted on 5/23/20 at 8:49 pm to
We’ll be fine.
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