Commodities like oil and bonds are especially volatile today.
If QE3 were to happen, my take and my advice would be take the charts of gold, oil, Treasury bonds, stocks, and the US dollar index.
The yen, yielding just 0.5%, was a cheap source of borrowed funds to buy much higher-yielding currencies like the New Zealand dollar, oil, U.S. high-yield bonds or even gold.
The reason for this week's wobble is that America's two greatest vulnerabilities its dependence on one set of foreigners to buy its bonds and on another to sell it oil were exposed side by side.
Fidelity New Markets has been overweight in Venezuela for several years, holding bonds of both the government and its captive oil company.
Thiel and his colleagues placed bets that reflected his contrarian nature: they bought Japanese government bonds when others were selling, concluded that oil supplies were running out and went long on energy, and saw a bubble growing in the U.S. housing market.
The price of YPF bonds briefly rose with the announcement of the oil firm's nationalisation in April by Argentina's government, because of a clause demanding advanced payment in the case of an expropriation, before falling back as investors worried Argentina wouldn't much care.
The big concern in the U.S. is not which country has the largest navy or nuclear arsenal, but whether China, Japan, and the oil exporting nations, will continue to buy U.S. bonds, and hold U.S. dollars in their central bank reserves, happy to be the largest foreign holders of U.S. debt.
The bonds promised to pay investors 10% interest, secured by oil and gas reserves, production and an investment portfolio, with no risk, the SEC quoted the documents as saying.
Carlson has most of his portfolio in dollar-denominated bonds issued by governments or their alter egos, like the Venezuelan oil company.
Venezuela is currently having financial problems due to the low price of oil and it seems unlikely that it will be able to buy more Argentinian bonds.
CENTERFORSECURITYPOLICY: Argentina��s Kirchner seizes private pension funds
In October, for example, the government announced it would issue bonds worth 235 billion rupees this fiscal year, which will compensate oil-market companies for about 43% of their losses.
Defense lawyers argued that Bonds thought the creams and ointments Anderson was giving him were made of flaxseed oil.
But the oil-service firms will get only the book value of their assets, paid in government bonds and with deductions for any labour or environmental liabilities the government adduces.
Both stocks and bonds were badly damaged in the mid-1970s after the Arabs sent the price of oil up.
Then there are non-commercial players, which includes index funds that have decided to trade oil, perhaps as a way to diversify and hedge against other bets in their portfolio, like bonds.
Oil prices began their most recent rally on June 18, as yields on Spanish 10-year bonds broke the fateful 7% mark and as the Greek electorate voted for Antonis Samaras to try to keep them in the monetary union.
FORBES: What's Wrong With This Picture? Oil Up More Than 20% As World Stagnates
Even in the face of a Great Depression, a World War, a Cold War, recessions, oil shocks, inflation and unemployment, Congress never sought to require the purchase of wheat or war bonds, force a higher savings rate or greater consumption of American goods, or require every American to purchase a more fuel efficient vehicle.
FORBES: Middle District of Pennsylvania Rules Three Obamacare Provisions Unconstitutional
Called the CQS Rig Finance Fund, it's the world's first fund that invests in bonds sold by companies--many of them Norwegian--to build and upgrade offshore oil rigs.
应用推荐