Jim Grant reports on the bond bubble: "$13 trillion of bonds are priced with negative yields"

Arbor Quantitative Analytics reports that the 30-year Treasury bond delivered a 10% return in the 10 days ended last week, among the best such sprints on record (it was in the 99.5th percentile).  Tuesday's Financial Times reported a drop in 10-year gilt yields to 0.71%, far below any yield recorded even when the pound was convertible into gold at a fixed price.  "Across the world," the paper said, "government bond yields continue to collapse as economists forecast low global growth and greater stimulus from central banks in spite of years of monetary easing.  Dutch benchmark 10-year rates are now negative, joining those of Japan, Germany and Switzerland."  According to Bank of America Merrill Lynch, $13 trillion of bonds are priced with negative yields, up from just about none two years ago.

~ Jim Grant, Grant's Interesting Rate Observer, "Remember the Shell Oil 2 1/2s of 1971," July 15, 2016

Grant's: "sovereign debt is the biggest bubble since the Bronze Age" (2016)

If practice makes perfect, Grant's is unrivaled in calling the top in bond prices.  We have done so repeatedly over the course of many years, even if not lately; since 2014, our line has rather been "one last gasp" for the bulls.  We now say that the last gasp has been gulped.  With all the fluency that comes with study and repetition, we say that sovereign debt is the biggest bubble since the Bronze Age, or maybe since ancient Sumer.  The notion that negative-yielding bonds, denominated in a fiat currency, are a "safe" asset is a misconception that belongs in the next edition of Extraordinary Popular Delusions and the Madness of Crowds.  We are bearish on bonds, especially the ones that, like new cars on a dealer's lot, positively guarantee the owner a loss as soon as he takes possession of his property.

~ Jim Grant, Grant's Interesting Rate Observer, "Remember the Shell Oil 2 1/2s of 1971," July 15, 2016

Donald Trump inauguration: protection leads to prosperity

Protection will lead to great prosperity and strength.

~ President Donald J. Trump, inauguration speech, January 20, 2017

Fast Money trader thinks every dip is a buying opportunity, even the terrifying 2% variety

When we get a 2% correction we’ll find out who has the stones to buy.

~ John Najarian, as appeared on CNBC’s Fast Money, January 17, 2017

Tony Hawk on success

My definition of success is doing what you love.  I feel many people do things because they feel they have to, and are hesitant to risk following their passion.

~ Tony Hawk, professional skateboarder and entrepreneur

Grace Hopper on information overload

We’re flooding people with information.  We need to feed it through a processor.  A human must turn information into intelligence or knowledge.  We’ve tended to forget that no computer will ever ask a new question.

~ Grace Hopper, computer scientist and U.S. Navy admiral

Benjamin Disraeli on adversity

There is no education like adversity.

~ Benjamin Disraeli, British statesman