Rush to Safety Keeps Rates Low

As the situation in Turkey keeps simmering global investors do the ‘rush to safety’ move once again sending the 10 year treasury down -4 basis point to around 2.85%.

As I glance at the Master List of $25 issues it appears that the safety play has probably moved share prices up by a few pennies–I know for sure it has had little to no impact on our personal holdings.

Obviously equity holders have been sellers today with the DJIA off 280 as I write–but of course this is nothing–we will worry when the DJIA falls 750-1000 points because at that point in time the evening news and mainstream media play it as a disaster.  Small players who have bought at high levels now sell at low levels and head for the cave in the backyard.  This is why the average retail investor earns 2.5% annually–instead of the much larger amount they brag about.

Remember that preferred stock and baby bond holders will not likely be hurt in a stock market tumble until we reach the point of pure panic and investors rush to toss the baby out with the bath water.

9 thoughts on “Rush to Safety Keeps Rates Low”

  1. Please panic! I’m waiting for the lemmings to jump off the cliff so I can jump in. I’ve got a list ready to go. Picking up some of Grid’s AILLL below $26 is my dream.

    1. Retired it may be a long time to get it under $26….Unless it gets redeemed then you can snag it under $26 pretty quick, lol… The 52 week chart says 25.10 as the low…That is total BS, it never traded there for anyone who could buy them. I was on level 2 when that happened and I had a $26.40 bid in and it just totally avoided it and all other trades. That was a rigged fraud trade trying to panic people to sell or something. A few of my online friends saw that too and they had bids around mine all were untouched also. Of course the next trade was well above our bids again, so no trade occured that day.

      1. LOL!

        I’ll keep my eye out for the sub $26 redemption trade. If I snag that…please call 911.

    2. Retired–you long for the good old days (2009) when investment grade sold down to $10—I could stand that also–unfortunately I don’t know if the FED has enough powder to stop another freight train out of control.

      1. Hindsight is great isn’t it ? If I had a time machine I know exactly what I’d do. I sometimes let mind my mind wonder and I think “What if ?”

        What if…I had put in for that 100 shares of Microsoft IPO like my co-worker.
        What if…I’d held onto that 1000 shares of Amazon I bought for $7/share
        What if…ah heck! There are too many “what if’s” to list


        1. Retired–I have the same ‘what ifs’. Google was a big mistake for me. Of course when VCR’s came out I said ‘who the hell wants to record something and watch it later’.

        2. My “what if” on Microsoft never materialized (thank goodness). I bought numerous loads around $40 and $60 and said “what if” it goes to $20. Of course, it now sits at $109.00!

          Blind squirrel theory and all…

    1. You’re most welcome rk–sometimes I try to reinforce old adages that we have all learned through the years for those newer folks that read this but never comment.

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