Rising Yields Discussion

Someone asked me if I am worried about "Rising yields."
The threat visualized HERE.
I know that CNBC often uses this to drum up fear and viewership.
1) Technically i concur that there is a setup for "yields" to spike. The TNX (10yr yield) chart shows it.

2) Stocks may care for a minute because of the media hype

3) In the end won't matter much. Apple Google, Netflix are not going to have fewer sales if the 10yield pays 1.6% or 2.5%. In 2018 it was over 3%.

I am not a bond experts but there is something called TINA (There Is No Alternative acronym). The higher the US yields go the more money will pile into them. So that will put a lid on yields because when there is a bid for bonds the yields fall (TLT rises and TNX falls).

In Europe bonds are negative yields. So any money looking for fixed income is a slam dunk decision to run into US bonds = TINA and a catch 22 for rising yields.


Posted to Create Income with Options … on Oct 19, 2021 — 2:10 PM
Comments ({[comments.length]})
Sort By:
Loading Comments
No comments. Break the ice and be the first!
Error loading comments Click here to retry
No comments found matching this filter
Want to add a comment? Take me to the new comment box!

Reviews Average Rating          

         
Nic's chatroom is the best chatroom that I've ever had. It always has plenty of great info everyday. Nic is super committed to this group and shares a wealth of knowledge, and market news; not to men…
         
Nic is the Tom Brady of options trading, nothing exciting to watch but strategically brilliant and gets the squad to the super bowl.
See All Reviews →