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Or no threat at all, but an opportunity to make more income.

We are on the verge of returning to the pre-2008 yield curve. Stay focused. Some of us want JP Morgan 10 year notes at 8%. When that happens it will be caviar, lobster tails, scallops, and USDA prime steaks.

It's encouraging to see that other people understand arithmetic. I thought I was in the Rod Serling's Twilight Zone for a time.

Just the aerial shots. DJI Air 2S but most of the video was shot with a Lumix G9 handheld.

Here are some of my clips mixed with terrestrial shots. They were shot just over a month ago in Geneva Switzerland.

Notwithstanding the fact that one third of homeowners own their properties free and clear, the vast majority of homeowners who have mortgages are locked in to record low yields. Those people are not budging and are really not impacted by the higher cost of borrowing. This is keeping inventory...

Here are some more thoughts on this. 5% Interest Income from CDs, T-Bills, Money Markets Fueled Spending. "Interest income to households is surging, fueled by 5% money-market funds, 5.2% CDs and Treasury bills, 4.5% savings accounts, and other fixed-income products that people have...

Wait for the BLS numbers tomorrow.

That pretty much describes us, my siblings, my in-laws, our next generation of trust fund children, most of my friends that have retired early, many of my neighbors. Those that are 100% debt free , have control over their expenses and spending habits, and have capital, will thrive in this...

It's $6300 per month or $75,600 per year. It don't understand how you lose $8000 by earning $6300. With your logic, anyone who is cash sorting by moving their money to higher yielding fixed income is losing money so they should leave it alone and earn less. Does that make sense? We are in a...

Some of us have zero exposure to equities and are 100% cash and fixed income. Some have rental properties and zero exposure to both bonds and equities. It may surprise many people that many those who invested in real estate over the past 30 years have achieved a significant level of wealth...

Yes. First and foremost, the default risk for "A" rates notes is extremely low. But a AA rating versus an A rating allows the issuer to price their notes to a lower spread relative to treasury notes.

Okay got it. I'll make a note of your points for the next BBQ. 1. It's better to earn $90 per year than $6300 per month ($75,600 per year) for the same capital. 2. Inflation is making the $75600 worth a lot less so earning $90 a year is better. 3. You will have much less purchasing power...

TD bank has a strong capital position (better than any North American Bank right now). Duration is also a factor in assessing risk in a corporate note. So the rating agencies are saying that over the next 14 months, the risk is lower than 5 years.

A 100% return of capital at maturity is a powerful feature of a fixed income ladder. Rolling maturities and coupon payments over to higher yields as rates rise is a bonus. Keeping durations relatively short, will keep you out of trouble.

The 2 year treasury hit a 16 year high today. They yield curve is finally starting to flatten. https://www.cnbc.com/2023/07/06/us-treasurys-investors-look-ahead-to-key-economic-reports.html

Navigating through this period in history requires lateral thinking not the conventional sound bites spewed by the financial media. The Fed never hiked rates in an economy where record amounts of cash were sitting in accounts earning zero and are suddenly earning over 5%. The rapid rise in...

Tell that to my neighbor who is now earning $6300 per month from his cash in risk free T-Bills versus about $90 per year parked in checking and savings accounts at the local bank. At the July 4th BBQ he was even happier when I told him that no state taxes are due on this extra income. The July...

You can stream Bloomberg TV for free. It is much better than CNBC and probably the most serious business network on TV. Remember the Bloomberg terminal is the gold standard for financial information.

As I stated many times, this economy is strong and getting stronger. The rate hikes are just adding more stimulus to the economy in the form of interest income as there is a lot of cash in the system previously earning almost zero but now generating over $1T in interest income. Some of that...

The ADP private payroll number has come in hot at 497,000 and more than double expectations. As I stated before the economy is strong and getting stronger. The long rates have breached 4% today. The two year is above 5%. We will be taking out the peaks from last October and March pretty...

We have always paid cash for our cars. Cash buyers get the best deals and better transparency in pricing. We also paid cash for our last property and we sold it in an all cash transaction. Most real-estate transactions in high demand locations these days are all cash.

Your 5.55% CD should be safe from a call. Earning 5.55% is not the worst thing in the world given where we were in early 2022.

I would wait for the 6% CDs to arrive. Treasury rates are trending up in anticipation of the supply coming to market.

Market timers are welcome here. I would hold off on buying anything right now. Just float money in MM funds. Build up some dry powder with maturities and coupon payments. Rates are likely to surge up. The 10 and 30 year are about to breach 4%. If it doesn't happen in the next few weeks...