Black Hole Engulfing the World's Bond Markets

[VRPdommy]

Black Hole Engulfing the World's Bond Markets

Could give you pause in thinking of your retirement/pension plans.
I will begin collecting early on 2 of mine at the end of the year as I build one more.
But I think high CASH levels are best defense. If you are anywhere near retirement, you should re-think your plans. Not everyone will have the same risk levels.
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There’s a multitrillion-dollar black hole growing at the heart of the world’s financial markets. Negative-yielding debt -- bonds worth less, not more, if held to maturity -- is spreading to more corners of the bond universe, destroying potential returns for investors and turning the system as we know it on its head. Now that it looks like sub-zero bonds are here to stay, there’s even more hand-wringing about the effects for mom-and-pop savers, pensioners, investors, buyout firms and governments.

https://www.bloomberg.com/news/artic...kets-quicktake

[InfoGuy]

Originally Posted by VRPdommy

I think high CASH levels are best defense.

Inflation will eat away at the value of cash, so negative yielding debt may still be more attractive than holding cash.

[VRPdommy]

Originally Posted by InfoGuy

Inflation will eat away at the value of cash, so negative yielding debt may still be more attractive than holding cash.

I have found that to be a MYTH.
But it does depend on how many of the things you 'will need to buy' are inflationary.
Go look at what makes the official inflation number and I doubt half of it applies to you in any meaningful way. By the same token, many things to and are not taken into proper accounting like energy. I have solar/alt energy homes
I own the homes I will die in. That is the major inflationary number.
I will sell some homes off as I get even older so inflation is my friend.(for now)

But all the medical fields (doctors, hospitals and insurance) will own it all in the end... why worry.