Post by
Carena on Aug 16, 2024 12:24pm
Higher For Longer? Some Musings....
Good day,
I have been on this board saying many times that I am in the "higher interest rates for longer"camp.
I just figured that since the US Gov't increased the money supply by 40% over a 2 year period, it stood to reason that this would create real inflation and thus higher rates would be the new norm for at least the medium term.
Had I known that the US Govt would consider price controls on food and energy as a solution to inflation, I would never had been in the "higher for longer" camp.
A summary of USA BIG government stimulus initiatives over the last 15 years:
(i) TARP in financial crisis
(ii) ZIRP policy - basically September 11, 2001 to March 2022
(iii) QE 1 and then QE 2
(iv) Ever increasing trillion dollar deficits
(v) Helicopter Money during the pandemic
(vi) Emptying of the Strategic Petroleum Reserve
(vii) Inflation Reduction Act (I love that name!)
(viii) and now Price Controls
(ix) Am I missing any others?
How could anyone be in the higher for "longer" camp.....crazy! I feel like I want to take my hard earned Economics Degree and throw it in the garbage...lol.
In terms of BPO prefs, I think lower rates are ultimately better for BPY issued capital...I would rather a $25 par value over a higher dividend payment.
Have a great day,
Carena
Comment by
Carena on Aug 17, 2024 7:22am
Good morning Sonnofergus, I agree with all you said. I am very long the "E" series and nice to see it close over $14 yesterday. Carena
Comment by
Carena on Aug 17, 2024 11:12am
I should clarify....the "E" volume yesterday was 100 shares....oops. Lol.
Comment by
pierrelebel on Aug 17, 2024 5:04pm
"the "E" volume yesterday was 100 shares...." If it makes you feel better, the actual volume yesterday was 1,100 shares of which 100 traded on the TSX and 1,000 on the other exchanges (Omega 200 @ 13.83, etc...)