tag:blogger.com,1999:blog-6616959642391988608.post4117684112827184373..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Reading the market tea leavesScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6616959642391988608.post-75184818892475012362012-07-10T21:16:59.183-07:002012-07-10T21:16:59.183-07:00Re How to interpret negative TIPS yields. The fact...Re How to interpret negative TIPS yields. The fact that they are negative suggests that the market has a very low expectation for economic growth in the U.S. If you want to see what inflation expectations are doing to TIPS, then you compare the real yield on TIPS with the nominal yield on Treasuries of comparable maturity: the difference is the market's expected inflation rate. Currently, Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-46286386401032208392012-07-10T19:48:54.340-07:002012-07-10T19:48:54.340-07:00Now I see how to interpret the negative TIP yields...Now I see how to interpret the negative TIP yields: They show the degree that an investor wants to ge protected from future inflation. Thanks. However, we are faced with the lowest 10 year Treasury yields in history which show us the opposite effect that those investors believe that we'll have deflation just like was thought during the Great Depression. Please tell us how you reconcile NormanBhttps://www.blogger.com/profile/05986709079442388236noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-20980642269618964062012-07-09T20:44:52.129-07:002012-07-09T20:44:52.129-07:00Hi Benjamin, the sooner the Fed drive the US into ...Hi Benjamin, the sooner the Fed drive the US into depression, the sooner we can all snap up some real bargains...McKibbinUSAhttps://www.blogger.com/profile/10545798495680527622noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-8184732458710235962012-07-09T19:20:27.540-07:002012-07-09T19:20:27.540-07:00Excellent macro-wrap-up by Scott Grannis.
The co...Excellent macro-wrap-up by Scott Grannis. <br /><br />The corporate profits as a percent of GDP chart is amazing, as is the interest rate charts. <br /><br />Still, the outlook for cooperate profits right now is so-so.<br /><br />The Fed should put the pedal tot he metal. Obviously, large institutional investors think inflation is dead, and I think they are right.Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-6331269713971471692012-07-09T16:11:32.711-07:002012-07-09T16:11:32.711-07:00According to Scott, "markets are priced to ve...According to Scott, "markets are priced to very pessimistic growth assumptions; the risk of catastrophic failure has declined meaningfully; financial markets are for the most part liquid and functioning; risk-aversion is still extremely high; deep-seated fear and uncertainty have been replaced by a conviction that there is little hope for any meaningful growth in the global economy for the McKibbinUSAhttps://www.blogger.com/profile/10545798495680527622noreply@blogger.com