tag:blogger.com,1999:blog-6616959642391988608.post3891591069131863478..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Bill yields return to zeroScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6616959642391988608.post-12761691697401996112009-11-21T18:51:49.802-08:002009-11-21T18:51:49.802-08:00My money markets desk is saying the zero-yields in...My money markets desk is saying the zero-yields in t-bills are partly the result of short-term cash funds/MMFs hoarding cash until just a few weeks ago. Now that they realize there's no liquidity crunch at year-end (much the oposite in fact) they've started to put money to work "over the turn". <br /><br />Why in bills? it's not panic, just relative value: at the margin, mojakushttps://www.blogger.com/profile/09545513877660371532noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-51871432608159631232009-11-19T17:26:53.333-08:002009-11-19T17:26:53.333-08:00To not buy risk assets you have to be basically te...To not buy risk assets you have to be basically terrified of the economy. I think there is still plenty of room for risk assets to improve. I don't see the economy collapsing or suffering from even a mild recession. <br /><br />Further, though the markets would probably take a hit when the Fed does tighten, I think it would only be temporary. I think at this point a Fed tightening actually Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-19415971391450069992009-11-19T16:32:40.194-08:002009-11-19T16:32:40.194-08:00Jeff, I am not Scott who has provided us with worl...Jeff, I am not Scott who has provided us with world class analysis. I suspect that if interest rates rise, the whiffs of inflation Scott detects will become full scents to the markets of inflation and that stocks will take a hit. I am sure that the size of rate increase will be key and that is why we will be reading Scottronraschhttps://www.blogger.com/profile/14708698068353771219noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-72704440031385388712009-11-19T15:33:07.732-08:002009-11-19T15:33:07.732-08:00Just so I'm clear...based upon you are seeing/...Just so I'm clear...based upon you are seeing/believing, what is your recommendation going forward? More Risk assets (i.e. stocks), TIPS and hard assets (i.e. gold, real estate, etc.)?<br /><br />Thanks for your input.<br /><br />JeffJeffhttps://www.blogger.com/profile/00939788327871137653noreply@blogger.com