CLIENT LOGIN
-
-
CIO INSIGHTS
-
BACK TO CIO INSIGHTS
BACK TO ARTICLES & INSIGHTS HOME
-
-
-
-
Investment Insights are written by Angeles' CIO Michael Rosen
Michael has more than 30 years experience as an institutional portfolio manager, investment strategist, trader and academic.
SEVEN LEAN YEARS? DONE IN SEVEN MINUTES
Published: 04-30-2015In Genesis (41:27), Joseph interprets Pharaoh’s dream of 7 fat cows followed by 7 lean (and apparently, ugly) cows, as foretelling the coming feast and then famine, enabling Egypt to prepare for the coming 7 lean years by stockpiling reserves.
Yesterday, the 10-year German bund leaped 12 basis points (see Graph below), along with a surging euro following the weak US GDP report. Now, 12 basis points is a big move, but we’ve seen bond yields move by that magnitude before. What is different about this time is that there is no yield to begin with, so yesterday’s move in the bund wiped out 7 years (!) of income.
If investing at near-zero yields for 10 years is rational, it will prove to be the worst decade for investors since the bubonic plague swept across Europe in the mid-14th century (ok, I made that up; but it could be right). But I’ll bet that it is not actually a rational investment, and monetary policy is distorting all kinds of prices and investment decisions.
PRINT THIS ARTICLE
-
Beginning's End 06-23-2015
In November 1942, with the Battle for Egypt under way, Winston Churchill addressed his nation with these words:Now this ...
READ MORE -
Beach Reading 07-29-2021
A few more outstanding books for your summer reading...Black Buck, Mateo AskaripourThis is an exceptional debut novel ...
READ MORE -
Economics in Action 06-12-2017
The intersection of supply and demand determines price and quantity: there is no more fundamental principle of economics ...
READ MORE
-
-
CONNECT WITH USSUBSCRIBE TO ANGELES' INSIGHTS
Get the latest investment information and stay on top of market trends.
-
SANTA MONICA
429 SANTA MONICA BLVD
SUITE 650
SANTA MONICA, CA 90401
310.393.6300
GET DIRECTIONS -
CONTACT US
NEW YORK
375 PARK AVENUE
SUITE 2209
NEW YORK, NY 10152
212.451.9240
GET DIRECTIONS -
CHICAGO
400 N. MICHIGAN AVE
SUITE S1700
CHICAGO, IL 60611
312.212.6843
GET DIRECTIONS
