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Stocks B / Berkshire Hathaway
|Subject: Re: bond risk to OIns industry- comments?||Date: 2/23/2013 3:23 PM|
|Author: susan400||Number: 199028 of 210508|
Peter- I don’t mean to pile on, but cash at .25 has strategic value, of course I have been saying that for 10 yrs after seeing Jim Grant’s quote. Have not been heavy in cash, but know too well, it isn’t as simple as today’s rate. Getting old here, in 1981, just 3 yrs into the brokerage field, XON’s div was 8%, t-bills 19% and 30 yr 14.4%.
It WAS HARD to buy a 30 yr, after it had been down 48% in just 3 yrs, but. Exxon, accept 8% over 19 in bills? A client smarted that I bought 1000 shs, 25K, I think div reinvested is about 900k today.
But are we asymmetrical vs Sept 19911
Elias – Not wishing to jinx you, I concur bur admit I have been thinking we are asymmetrical to Sept 1919 for 8 + yrs.
BTW Perma-GoldBugs always predict hyper inflation, maybe some day but have been wrong for 100 yrs.
One observation you both allude to, few remember a bond market, in the 70s only widows, or those over 75 knew what a bond was.
Today I know 60 yr olds who never owned an equity (too risky!) and feel very secure having not lived their neighbors ’08-‘9 nightmare, unable to fathom that ABC even “safe” short term bond fund, can lose 25% like ‘nuttin.
Thanks for the replies.
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