Posts Tagged ‘government’
Corporate Bonds And Government Bonds
March 24th, 2007
Question: money policies and effects they have?
what effects would a tight money policy tend to have in:
(a) the price of corporate shares on the stock market?
(b) the price of outstanding government bonds (bonds that were issued in the past and have not yet matured and can thus still be bought and sold?
answers and opinions please
Answer: a) Prices of shares go way down. In Reality the DOW should hit 1,000 with todays money in 3 years. With Inflation that would be maybe 2,000 or 3,000 or 5,000 (500% inflation in 3 years are you kidding me? NO). However, the stocks are going way down
b) I am not sure on this one, but the experts whom seek truth on this market are all saying to short this fund, so Bonds values will be going down harsh.
Have a good one
In-Depth Look: Corporate Bonds Falling Dramatically
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