They just intervened
Your just parked there, like you can't cash out your 401k without penali and taxes but you can transfer it to a bond fund. And when you think things are better you move it back. It's like 2 clicks of the mouse.
Some people if they think yields are gonna go lower will buy for capital gains. Bond capital gains have been doing pretty well for last couple of years even relative to the instance bull market we been having. You would feel like a genius if you bought a bunch at 1%
Bond doesn't do that. The lower the yield after you buy, the higher the price of a bond. Higher yield, lower price.
30 yrs bond is now up 3% today alone. People are trying to guess buying a bond guarantees them "safety" and bond price increases as the yield goes down further.
We're not talking about your $17k savings. You are a single celled organism in a small fish's gut. This is triggered by entities holding billions in assets. That money wouldn't fit in a checking account and is not insured above a puny amount either. So you have billions now, the problem is where the fuck do you park it?
For any normal person that's fine, but it's only insured for up to $250K if the bank goes bust. People that buy bonds have much more cash than that, and aren't willing to risk it to banks that might not exist, where government bonds have essentially 0% chance of default.
Yes, but the alternative is that the price goes up and people are under the impression that is because others are losing faith in the market.
I would generally agree if this was a commodity or something else, but the price of bonds might not follow the usual logic - because it might make sense to take a small hit if it means your retirement or life savings will at least survive financial armageddon.
In 2008, the entire fucking banking system was on the precipice of collapse and people were literally taking their money out because it was going tits up. Life went on. And I was working in PIGS europoor country at the time. We're nowhere close to being that bad atm. Get a grip son.
2008 was a demand-side recession compounded by a system collapse. Right now we're facing a supply-side recession. I'd say this is more similar to 70s oil shocks, or early 90s recession than 2008 collapse. The market is tanking because it's pricing in really shitty earnings in April, and investors are expecting the worst.
The reason why buying the dip might be favorable is easy money policies hasn't gone away, and incoming stimulus as a result of the supply-chain disruption due to coronavirus is expected. Honestly, we have more room to come down, but I'll love to grab momo stocks that rallied back between 2019-Jan 2020 if there are signs of ES bottoming out around mid 2600s
Historically flu reports drop during summer but go up exponentially during spring which just started. Not mention only cases we have are reported, I'm fairly certain that I have it myself. My city has no reports.. I live in a city with a couple million