We are entering a "Golden Period" for fixed income investing

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I've done my parents tax return since I graduated from college. When Dad retired I was vaguely aware of his retirement portfolio, mostly mutual funds and a commercial rental. When Dad died 18 years ago I took over portfolio and property management. Mom is smart and still with it but has zero interest and is happy to let me do it. DSis, Mom and I are co-trustees and if I make any major moves I get their concurrence before proceeding and keep them informed, but the are not involved in and have no interest in the details.
 
Does curve normalization mean higher rates on the long end or lower rates on the short end? Would it be more one than the other?
 
Free bird said:
Does curve normalization mean higher rates on the long end or lower rates on the short end? Would it be more one than the other?
Click to expand...

Higher rates at the long end. So as your 2024 CDs, or notes mature, you can buy 3,4,5 years out depending on the duration of your ladder.
 
This is another example of why job cuts in the technology sector mean absolutely nothing to the overall jobs picture and economy.

"These Tech Workers Say They Were Hired to Do Nothing"

"Amid layoffs, former workers in tech are venting about jobs with little to do; ‘hoarding us like Pokémon cards’"

A recruiter was paid $190K per year at Meta (Facebook) not to hire anyone or do any work.

“They were hiring ahead of demand,”

https://www.wsj.com/articles/these-...hired-to-do-nothing-762ff158?mod=hp_lead_pos3

One of the reasons I retired early is the frustration of watching employees with their eyes constantly gazing at their phones scrolling through social media. Imagine being hired and paid $190K per year to do nothing.
 
Freedom56 said:
https://www.wsj.com/articles/these-...hired-to-do-nothing-762ff158?mod=hp_lead_pos3

One of the reasons I retired early is the frustration of watching employees with their eyes constantly gazing at their phones scrolling through social media. Imagine being hired and paid $190K per year to do nothing.
Click to expand...

IIRC, Dilbert had a rather lazy co-worker named Wally. Wally's professional goal was to find a position where he had no effect on anything. Presumably, he has applied for one of these do-nothing jobs.
 
Freedom56 said:
This is another example of why job cuts in the technology sector mean absolutely nothing to the overall jobs picture and economy.

"These Tech Workers Say They Were Hired to Do Nothing"

"Amid layoffs, former workers in tech are venting about jobs with little to do; ‘hoarding us like Pokémon cards’"

A recruiter was paid $190K per year at Meta (Facebook) not to hire anyone or do any work.

“They were hiring ahead of demand,”

https://www.wsj.com/articles/these-...hired-to-do-nothing-762ff158?mod=hp_lead_pos3

One of the reasons I retired early is the frustration of watching employees with their eyes constantly gazing at their phones scrolling through social media. Imagine being hired and paid $190K per year to do nothing.
Click to expand...

Been there too.

There was a huge run up in salaries over the last few years, much of which inverted the salary curve for experienced versus new hires.

The wailing and gnashing of teeth right now makes me want to puke.:sick:

Thing is, in past times I was once one of the whiners, so I get it. Been there and done that. Saw my salary decline for 10 years because I was once one of the inverted "chosen ones" too.
 
Free bird said:
Does curve normalization mean higher rates on the long end or lower rates on the short end? Would it be more one than the other?
Click to expand...
Historically, the yield curve usually reverts with lower short rates.

And this seems likely here since we are headed to recession with hiring slowing, job openings reduced and the rate of inflation moderating.
 
ER604me said:
DF set her up with a portion of Telcom coming to her as a quarterly check. It has become very important to her. sort of crazy & frustrating. DF worked for T subsidiary. The stocks have lost a lot of value over last three years but she won't change
Click to expand...
ER, don't get frustrate with your DM. These quarterly checks may have special sentimental value to her (in addition to the monetary value). That might be why she doesn't want to change.
 
Montecfo said:
Historically, the yield curve usually reverts with lower short rates.

And this seems likely here since we are headed to recession with hiring slowing, job openings reduced and the rate of inflation moderating.
Click to expand...



That is the classic textbook version. And basically what we have been saying for 6 months. Raising the short end becomes pushing on a string for the long end. But it does serve a tightening purpose as many loans are floating tied to short end such as Libor (SOFR), etc.
 
Freedom56 said:
This is another example of why job cuts in the technology sector mean absolutely nothing to the overall jobs picture and economy.

"These Tech Workers Say They Were Hired to Do Nothing"

"Amid layoffs, former workers in tech are venting about jobs with little to do; ‘hoarding us like Pokémon cards’"

A recruiter was paid $190K per year at Meta (Facebook) not to hire anyone or do any work.

“They were hiring ahead of demand,”

https://www.wsj.com/articles/these-...hired-to-do-nothing-762ff158?mod=hp_lead_pos3

One of the reasons I retired early is the frustration of watching employees with their eyes constantly gazing at their phones scrolling through social media. Imagine being hired and paid $190K per year to do nothing.
Click to expand...

So where can I apply for one of those positions?

Sounds like fun when you're already FI.

E.g., "working from home" and on a Mediterranean island-hopping cruise at the same time.
 
Markola said:
Pardon if this has been covered in this thread’s 4,000+ posts, but this period of high inflation is what TIPS were made for. In fact, VIPS fund is doing better than the total bond index since inflation reared its head. On the other hand, one might think TIPS would be performing even better. Just a market observation, not advocacy.

Click to expand...
 
Extensive interview with JP Morgan CEO Jamie Dimon.

Some views on interest rates, inflation, and the debt ceiling.



 
I am in charge of my 90 y.o. DM 's investments and taxes. She knows to never give out any info and not agree to anything before I approve of it.
However still unwinding my DF's investment in a variable annuity.
 
^^^^
Congratulations. We've had to work thru a couple of annuities and life insurance claims.
 
^^^^^
I'm not a big Jamie Dimon fan but I watched all the videos to hear/understand his perspective... My take he was spot on (made sense) when talking about specific banking related issues. But, I had mixed feelings about the other topics and issues he weaved into the interview and commented on. Ranging from full agreement to full disagreement.
 
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Unfortunately, I am a bit jaded. I think that all these prognosticators spin things to their own advantage, especially those who have stakes in the game. Dimon has a lot of stakes in the game with JP Morgan whose profits he depends on.

I prefer listening to Diane Swonk, I feel she talks from a more neutral position. I may be wrong.
 
He can be a bit all over the place.

He was predicting $200/barrel oil last summer. And what a financial hurricane?

I go from thinking he is insightful to just hyperbolic.
 
Woke up to a GSE bond call today.

Security: FFCB 5.6%26
**CALLED** @100 EFF: 04/13/2023
CUSIP3133EN2G4
Call date:. April 13, 2023

It was good while it lasted. Time to go shopping!
 
I actually have a couple with call dates this week and I hope they get called. Probably will since they are over 6%. I have my eye on a few other things.
 
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