related_results_labels({"version":"1.0","encoding":"UTF-8","feed":{"xmlns":"http://www.w3.org/2005/Atom","xmlns$openSearch":"http://a9.com/-/spec/opensearchrss/1.0/","xmlns$georss":"http://www.georss.org/georss","id":{"$t":"tag:blogger.com,1999:blog-7676161"},"updated":{"$t":"2009-12-16T01:00:20.406-05:00"},"title":{"type":"text","$t":"EF Hutton"},"subtitle":{"type":"html","$t":"...Are you Listening?"},"link":[{"rel":"http://schemas.google.com/g/2005#feed","type":"application/atom+xml","href":"http://efhutton.blogspot.com/feeds/posts/default"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/-/bonds?alt\u003djson-in-script\u0026max-results\u003d5"},{"rel":"alternate","type":"text/html","href":"http://efhutton.blogspot.com/search/label/bonds"},{"rel":"hub","href":"http://pubsubhubbub.appspot.com/"}],"author":[{"name":{"$t":"Bob DeMarco"},"uri":{"$t":"http://www.blogger.com/profile/14861703129474871916"},"email":{"$t":"rtdemarco@gmail.com"}}],"generator":{"version":"7.00","uri":"http://www.blogger.com","$t":"Blogger"},"openSearch$totalResults":{"$t":"3"},"openSearch$startIndex":{"$t":"1"},"openSearch$itemsPerPage":{"$t":"5"},"entry":[{"id":{"$t":"tag:blogger.com,1999:blog-7676161.post-1866783697791013998"},"published":{"$t":"2009-04-30T10:48:00.001-04:00"},"updated":{"$t":"2009-04-30T10:50:51.516-04:00"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"treasury"},{"scheme":"http://www.blogger.com/atom/ns#","term":"bonds"},{"scheme":"http://www.blogger.com/atom/ns#","term":"all american investor"},{"scheme":"http://www.blogger.com/atom/ns#","term":"stocks"},{"scheme":"http://www.blogger.com/atom/ns#","term":"FOMC"},{"scheme":"http://www.blogger.com/atom/ns#","term":"fed"},{"scheme":"http://www.blogger.com/atom/ns#","term":"inflation"}],"title":{"type":"text","$t":"Fed Monetizing Debt -- How long before the Inflation Comes?"},"content":{"type":"html","$t":"No matter how you cut or slice it, the FED is going to monetize debt. This means you want to be owning stocks and ETFs that benefit from an increase in inflation.\u003cbr /\u003e\u003cbr /\u003eOver the next week, we will be putting up some of our ideas on how to take advantage of this scenario.\u003cbr /\u003e\u003cbr /\u003eIf you have been following the charts on All American Investor -- you noticed that I have been talking about rising rates in the ten and thirty year treasuries for a few weeks. If you are not paying close attention to this as in investor you are making a big mistake.\u003cbr /\u003e\u003cbr /\u003eThe bond vigilantes are coming back, and soon with a vengeance. Longer dated treasury interest rates are drifting up. This, in spite, of massive buying of treasuries by the FED -- we showed the balance sheet on Saturday.\u003cbr /\u003e\u003cbr /\u003e\u003cspan style\u003d\"font-weight: bold;\"\u003eHere is a snippet from the latest FOMC release:\u003c/span\u003e\u003cbr /\u003e\u003cbr /\u003e\u003cblockquote\u003eAs previously announced, to provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, \u003cspan style\u003d\"font-weight: bold;\"\u003ethe Federal Reserve will purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt by the end of the year.\u003c/span\u003e In addition, \u003cspan style\u003d\"font-weight: bold;\"\u003ethe Federal Reserve will buy up to $300 billion of Treasury securities by autumn. \u003c/span\u003eThe Committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets. The Federal Reserve is facilitating the extension of credit to households and businesses and supporting the functioning of financial markets through a range of liquidity programs. The Committee will continue to carefully monitor the size and composition of the Federal Reserve's balance sheet in light of financial and economic developments.\u003cbr /\u003e\u003c/blockquote\u003e\u003cbr /\u003eBuy $300 billion of treasuries by Autumn?\u003cbr /\u003e\u003cbr /\u003eThe best way to think of the current scenario is like boiling water in a tea pot. Sooner or later, the whistle will blow.\u003cbr /\u003e\u003cbr /\u003eDon't like the above? Remember, I am the same guy that predicted this really in stocks when I wrote:\u003cbr /\u003e\u003cul\u003e\u003cli\u003eThey call me crazy -- S and P 900-1000\u003c/li\u003e\u003cli\u003eand, Stocks Don't Fight the Tape.\u003c/li\u003e\u003c/ul\u003eThere is a lot of chicken on the hill. My guess here right now is: material stocks, commodity stocks, related ETFs and short the long bond.\u003cbr /\u003e\u003cblockquote style\u003d\"text-align: center;\"\u003e\u003ca href\u003d\"http://feedburner.google.com/fb/a/mailverify?uri\u003dAllAmericanInvestor\u0026amp;loc\u003den_US\"\u003e\u003cspan class\u003d\"Apple-style-span\"  style\u003d\"font-size:large;\"\u003e\u003cb\u003eSubscribe to All American Investor via Email\u003c/b\u003e\u003c/span\u003e\u003c/a\u003e\u003c/blockquote\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/7676161-1866783697791013998?l\u003defhutton.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"related","href":"http://efhutton.blogspot.com/2009/04/fed-monetizing-debt-how-long-before.html","title":"Fed Monetizing Debt -- How long before the Inflation Comes?"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/1866783697791013998"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/1866783697791013998"},{"rel":"alternate","type":"text/html","href":"http://efhutton.blogspot.com/2009/04/fed-monetizing-debt-how-long-before.html","title":"Fed Monetizing Debt -- How long before the Inflation Comes?"}],"author":[{"name":{"$t":"Bob DeMarco"},"uri":{"$t":"http://www.blogger.com/profile/14861703129474871916"},"email":{"$t":"rtdemarco@gmail.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"02937219926706406775"}}]},{"id":{"$t":"tag:blogger.com,1999:blog-7676161.post-8108004926841814670"},"published":{"$t":"2009-03-15T09:45:00.003-04:00"},"updated":{"$t":"2009-03-15T09:50:03.446-04:00"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"U S"},{"scheme":"http://www.blogger.com/atom/ns#","term":"default"},{"scheme":"http://www.blogger.com/atom/ns#","term":"rating"},{"scheme":"http://www.blogger.com/atom/ns#","term":"credit"},{"scheme":"http://www.blogger.com/atom/ns#","term":"debt"},{"scheme":"http://www.blogger.com/atom/ns#","term":"bonds"},{"scheme":"http://www.blogger.com/atom/ns#","term":"sovereign"},{"scheme":"http://www.blogger.com/atom/ns#","term":"governement"},{"scheme":"http://www.blogger.com/atom/ns#","term":"moodys"},{"scheme":"http://www.blogger.com/atom/ns#","term":"swap"}],"title":{"type":"text","$t":"Bad Omen for U. S. Government Debt"},"content":{"type":"html","$t":"The cost of buying a credit default sway (CDS) on U. S. government debt is soaring. The spread has widened from 14 basis points a year ago to 97 basis points now. To put this in perspective, the cost to buy insurance against the possible default of U.S. government bonds (sovereign debt) has risen to $97,000 per $1,000,000 of debt. Yikes. This makes the cost of buying insurance roughly equivalent to that of France.\u003cbr /\u003e\u003cbr /\u003eThe potential for a downgrade of U. S. sovereign debt is listed as considerable by Moody's. Moody's describes the current situation for the debt as: \u003cblockquote\u003eResilient Aaa, whose ratings are being tested but, in our view, display sufficient capacity to grow out of their debt and repair the damage.\u003c/blockquote\u003e\u003cbr /\u003e\u003cdiv\u003e\u003ccenter\u003e\u003ca href\u003d\"http://www.amazon.com/gp/product/1416533125?ie\u003dUTF8\u0026amp;tag\u003dfelix00-20\u0026amp;linkCode\u003dxm2\u0026amp;camp\u003d1789\u0026amp;creativeASIN\u003d1416533125\"\u003e\u003cimg style\u003d\"margin: 0px 0px 10px 10px; width: 220px;\" alt\u003d\"\" src\u003d\"http://ecx.images-amazon.com/images/I/51xwYLIgYZL._BO2,204,203,200_PIsitb-sticker-arrow-click,TopRight,35,-76_AA240_SH20_OU01_.jpg\" border\u003d\"0\" /\u003e\u003c/a\u003e \u003c/center\u003e\u003c/div\u003e\u003cbr /\u003e\u003cdiv\u003e\u003ccenter\u003e\u003ca href\u003d\"http://www.amazon.com/gp/product/1416533125?ie\u003dUTF8\u0026amp;tag\u003dfelix00-20\u0026amp;linkCode\u003das2\u0026amp;camp\u003d1789\u0026amp;creative\u003d9325\u0026amp;creativeASIN\u003d1416533125\"\u003eBold Endeavors: How Our Government Built America, and Why It Must Rebuild Now\u003c/a\u003e\u003cimg src\u003d\"http://www.assoc-amazon.com/e/ir?t\u003dfelix00-20\u0026amp;l\u003das2\u0026amp;o\u003d1\u0026amp;a\u003d1416533125\" alt\u003d\"\" style\u003d\"border: medium none  ! important; margin: 0px ! important;\" width\u003d\"1\" border\u003d\"0\" height\u003d\"1\" /\u003e\u003c/center\u003e\u003c/div\u003e\u003cblockquote style\u003d\"text-align: center;\"\u003e\u003ca href\u003d\"http://feedburner.google.com/fb/a/mailverify?uri\u003dEfHutton\u0026amp;loc\u003den_US\"\u003e\u003cspan class\u003d\"Apple-style-span\"  style\u003d\"font-size:large;\"\u003e\u003cspan style\u003d\"font-weight: bold;\"\u003eSubscribe to EF Hutton via Email\u003c/span\u003e\u003c/span\u003e\u003c/a\u003e\u003c/blockquote\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/7676161-8108004926841814670?l\u003defhutton.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/8108004926841814670"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/8108004926841814670"},{"rel":"alternate","type":"text/html","href":"http://efhutton.blogspot.com/2009/03/bad-omen-for-u-s-government-debt.html","title":"Bad Omen for U. S. Government Debt"}],"author":[{"name":{"$t":"Bob DeMarco"},"uri":{"$t":"http://www.blogger.com/profile/14861703129474871916"},"email":{"$t":"rtdemarco@gmail.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"02937219926706406775"}}]},{"id":{"$t":"tag:blogger.com,1999:blog-7676161.post-6673099328436675654"},"published":{"$t":"2009-01-11T23:28:00.004-05:00"},"updated":{"$t":"2009-01-11T23:44:49.667-05:00"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"TIPS"},{"scheme":"http://www.blogger.com/atom/ns#","term":"protected"},{"scheme":"http://www.blogger.com/atom/ns#","term":"treasury"},{"scheme":"http://www.blogger.com/atom/ns#","term":"bonds"},{"scheme":"http://www.blogger.com/atom/ns#","term":"muni"},{"scheme":"http://www.blogger.com/atom/ns#","term":"pimco"},{"scheme":"http://www.blogger.com/atom/ns#","term":"gross"},{"scheme":"http://www.blogger.com/atom/ns#","term":"inflation"}],"title":{"type":"text","$t":"PIMCOs Gross likes Muni Bonds and Treasury Inflation Protected Securities"},"content":{"type":"html","$t":"\u003cblockquote\u003eMunicipal bonds are among the best buying opportunities now as states line up for billions in federal aid from the incoming Barack Obama administration, said Bill Gross, chief investment officer of the giant bond firm PIMCO.\u003cbr /\u003e\u003ca onblur\u003d\"try {parent.deselectBloggerImageGracefully();} catch(e) {}\" href\u003d\"http://tbn0.google.com/images?q\u003dtbn:EoDwMBhe6n0RkM:http://money.cnn.com/2005/08/11/markets/bondcenter/bond_shortage/gross_bill.03.jpg\"\u003e\u003cimg style\u003d\"float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 106px; height: 79px;\" src\u003d\"http://tbn0.google.com/images?q\u003dtbn:EoDwMBhe6n0RkM:http://money.cnn.com/2005/08/11/markets/bondcenter/bond_shortage/gross_bill.03.jpg\" border\u003d\"0\" alt\u003d\"\" /\u003e\u003c/a\u003e\u003cbr /\u003eOther strategies offered by Gross in his January investment newsletter were buying Treasury Inflation Protected Securities (TIPS) and certain investment-grade corporate bonds.\u003cbr /\u003e\u003cbr /\u003eBy contrast, in the Treasury market, \"low yields offer little reward and increasing risk,\" given ballooning federal budget deficits, he said.\u003c/blockquote\u003e\u003cbr /\u003e\u003cblockquote style\u003d\"text-align: center;\"\u003e\u003ca href\u003d\"http://www.feedburner.com/fb/a/emailverifySubmit?feedId\u003d815120\u0026amp;loc\u003den_US\"\u003e\u003cspan class\u003d\"Apple-style-span\"  style\u003d\"font-size:large;\"\u003eSubscribe to EF Hutton via Email\u003c/span\u003e\u003c/a\u003e\u003c/blockquote\u003e\u003cbr /\u003e\u003cspan id\u003d\"fullpost\"\u003e       \u003cbr /\u003e\u003ch1\u003e\u003ca href\u003d\"http://uk.reuters.com/article/ousiv/idUKTRE5076PK20090108?pageNumber\u003d2\u0026amp;virtualBrandChannel\u003d0\"\u003ePIMCO's Gross says muni bonds and TIPS \"attractive\"\u003c/a\u003e\u003c/h1\u003e\u003cbr /\u003e\u003cbr /\u003eBy Ros Krasny\u003cbr /\u003e\u003cbr /\u003eCHICAGO (Reuters) - Municipal bonds are among the best buying opportunities now as states line up for billions in federal aid from the incoming Barack Obama administration, said Bill Gross, chief investment officer of the giant bond firm PIMCO.\u003cbr /\u003e\u003cbr /\u003eOther strategies offered by Gross in his January investment newsletter were buying Treasury Inflation Protected Securities (TIPS) and certain investment-grade corporate bonds.\u003cbr /\u003e\u003cbr /\u003eBy contrast, in the Treasury market, \"low yields offer little reward and increasing risk,\" given ballooning federal budget deficits, he said.\u003cbr /\u003e\u003cbr /\u003eGross noted that requests for aid from municipalities and states total nearly $1 trillion \"and to think California or New York City would be allowed to fail is, well -- unthinkable.\"\u003cbr /\u003e\u003cbr /\u003e\"Municipal bonds ... selling at historically high ratios relative to U.S. Treasuries, offer attractive price appreciation potential, or at the very least a defensiveness with high carry that a 2 1/2 percent 10-year Treasury cannot,\" Gross said.\u003cbr /\u003e\u003cbr /\u003eAccording to Municipal Market Data, top-rated 30-year munis now yield 161 percent and 10-year munis yield 133 percent of comparable Treasuries.\u003cbr /\u003e\u003cbr /\u003eTriple A rated munis started 2008 yielding a more normal 85 percent of 30-year Treasuries and 79 percent of 10-year government bonds.\u003cbr /\u003e\u003cbr /\u003eMeanwhile, Gross said he doubted the U.S. economy was in for the type of deflation that markets are forecasting, making TIPS a good buy.\u003cbr /\u003e\u003cbr /\u003eCurrent ultra-low Treasury yields \"cannot possibly be maintained unless deflation, as opposed to inflation, becomes the odds-on favorite,\" he said.\u003cbr /\u003e\u003cbr /\u003eMarket-based break-even inflation rates now point to a consumer price index averaging negative 1 percent for the next 10 years, which Gross termed \"possible, but not likely.\"\u003cbr /\u003e\u003cbr /\u003eOn the corporate bond side, yields of 6 percent or more for intermediate maturities are still common, Gross said.\u003cbr /\u003e\u003cbr /\u003e\"Investors should recognize the value of high-quality, investment-grade corporate bonds in many markets.\"\u003cbr /\u003e\u003cbr /\u003eOtherwise, PIMCO continues to maintain a strategy of buying assets that are under the federal bailout \"umbrella.\"\u003cbr /\u003e\u003cbr /\u003e\"Shake hands with the government ... their checkbook represents the largest and most potent source of buying power in 2009 and beyond,\" Gross said.\u003cbr /\u003e\u003cbr /\u003eGross said investors needed to be vigilant about higher inflation over the long term, given the \"near certainty of future budget deficits approaching 6 percent to 7 percent of GDP.\"\u003cbr /\u003e\u003cbr /\u003e(Additional reporting by Karen Pierog; Editing by Kenneth Barry)\u003cbr /\u003e\u003c/span\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/7676161-6673099328436675654?l\u003defhutton.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://efhutton.blogspot.com/feeds/6673099328436675654/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"http://efhutton.blogspot.com/2009/01/pimcos-gross-likes-muni-bonds-and.html#comment-form","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/6673099328436675654"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/6673099328436675654"},{"rel":"alternate","type":"text/html","href":"http://efhutton.blogspot.com/2009/01/pimcos-gross-likes-muni-bonds-and.html","title":"PIMCOs Gross likes Muni Bonds and Treasury Inflation Protected Securities"}],"author":[{"name":{"$t":"Bob DeMarco"},"uri":{"$t":"http://www.blogger.com/profile/14861703129474871916"},"email":{"$t":"rtdemarco@gmail.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"02937219926706406775"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}}]}});