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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

amolina

Member
Jan 24, 2020
248
2,565
Berlin
Bonds have a coupon yield attached to them. Say 100 dollars bond has a coupon of 1 dollar/year. This makes it a 1% yield. So you buy the bond for a 100 and you get the 1 dollar/year in yield. However you can sell and buy bonds like a stock. Now that all the bonds are distributed, it's now tradable on the open market. So if someone is willing to get that dollar every year but pay 110 dollars, you can sell it to that person for 110 dollars. This bond yield effectively went DOWN because it's now for 110, you get the 1 dollar, meaning yield is now 0.9%. The opposite is true, if there are no buyers because everyone sees higher interest rates elsewhere, then a lot of the time you have to match them just to get rid of your bond if you want to sell. So you can let go of your bond for 90 bucks and that will yield a 1 dollar/year, or 1.1% yield.

So if people are anticipating rates will go up, then people will wait for those newly issued bonds with higher yields and not want yours until you are willing to price match. This is why bonds are crap investments during low interest rate era because it can only go down as rates eventually goes up.


thank you for this explanation. Makes a ton of sense now. So basically, bond holders were trying to get rid of the 10 year TTL and hence the yield increased by about 0.5%. Understood.

Its such a pity that this BIG/conservative money that buys Bonds, would probably not chase Bitcoin or Tesla as its investments :p
 
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Singuy

Active Member
Jun 28, 2018
3,292
22,308
US
The good news of big multiple dips like how we have had, is it reduces the probability of future multiple big dips.

Not saying this is the bottom, but it brings us closer to the bottom.

The bottom is the worst time to develop paper hands.

This is advice.
Paper hands is what gave us our dip. Hands are becoming more and more carbon like moving forward
 

StealthP3D

Well-Known Member
Dec 12, 2018
8,629
63,224
Maple Falls, WA
Disagree here. I LOVE how Tesla doesn't spend money on advertising, but since they canned the PR department I think things have got too sparse. I mean why don’t they just hire Omar and K10 and make it official...... ?”

Seriously? Do you know how much paperwork that would involve?

Employee S.S. taxes, workman's comp, health and medical, unemployment insurance premiums and retirement contributions, etc. Plus, they would have to send them a check every two weeks and make sure they were up to date on their sensitivity training and the list goes on.

It's much better to let them do it because they love doing it. :D
 

Big Time

Member
May 8, 2020
587
3,125
Minneapolis
Seriously? Do you know how much paperwork that would involve?

Employee S.S. taxes, workman's comp, health and medical, unemployment insurance premiums and retirement contributions, etc. Plus, they would have to send them a check every two weeks and make sure they were up to date on their sensitivity training and the list goes on.

It's much better to let them do it because they love doing it. :D

Ok fair, and yes they do love it, but for a company that is expanding across the globe seamingly 2 new employees shouldn’t break the bank!

either way I’d like to see more official releases!
 

MXWing

Well-Known Member
Oct 13, 2016
7,270
17,738
USA
MAMA CATHIE IS IN.

IF CATHIE IS IN. I AM IN.

I AM IN EVEN WHEN SHE SELLS.. but whatever.. I'M IN.

upload_2021-2-22_15-54-58.png


The only way for me to get more excited is if Cathie accidently buys TSLA in ARKG because she's in such a hurry. :D
 
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Cherry Wine

Supporting Member
Oct 4, 2018
2,318
17,581
California
All true. RSI and MFI are both at levels not seen since COVID crash. I understand that inflation fear is impactful, but does it rival COVID fear? Just doesn't make sense at all.

A little easier to understand if you subscribe to the theory that the stock got a little ahead of itself in January, which I do. But I agree, this drop is overdone.
 

Fred42

Member
Dec 24, 2018
887
2,488
Pennsylvania
Under yield curve control (YCC), the Fed would target some longer-term rate and pledge to buy enough long-term bonds to keep the rate from rising above its target. This would be one way for the Fed to stimulate the economy if bringing short-term rates to zero isn’t enough.

Once bond markets internalize the central bank’s commitment, the target price becomes the market price—who would be willing to sell the bond to a private investor for less than they could get by selling to the Fed?
When he was still here, factchecking predicted the Fed would do their best to tank the economy if the Dems won in November 2020.
 

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