≈ And Gold for free. ≈

Two things are constantly fighting for my attention every single day: the truths about Life & Universe and bills to pay.

Recently, though, there is one other topic that wants to make it to the list: negative yields.

We all know that the major central banks have been flooding the markets with easy money for over a decade, expanding their balance sheets from a mere $5 trillion to something around $22 trillion. However, sovereign bonds with negative yields are stealing the thunder.

Last time I’ve heard, something like 20% of the total sovereign bonds issued around the world (≈$ 12.5 trillion) is in negative yield territory. Such a phenomenon is becoming mainstream in the corporate world too. On Q1 2019, LVMH Moët Hennessy – Louis Vuitton issued bonds yielding –0.17%.

Take a quick look at this data here, fresh from Bloomberg’s website (Bond | Yield):

• Germany Bund 2 Year Yield | –0.86%
• Germany Bund 5 Year Yield | –0.85%
• Germany Bund 10 Year Yield | –0.59%
• Germany Bund 30 Year Yield | –0.01%

Three years ago, James Rickards released the book “The New Case For Gold”. Right in the first pages, he lays out the case against Gold in six bullet points. Number five reads “Gold has no yield”. That is a true statement. Gold is money and money has no yield.

Sometimes truth is stranger than fiction, I guess. Now that bond yields are starting to dabble into the realms of negative numerals, Gold is almost becoming a natural carry trade against them. Its zero yield looks profitable from this perspective.

With all that said, I can only leave you with this quick “Thought Of The Day”:

• Buy a vault.
• Buy Gold.

Chart of the Day

Money for Nothing

Let’s talk about printing money for a second.

Video of the day

Dire Straits – Money For Nothing

Lemme tell ya, them guys ain’t dumb.

Today’s line up

Rookie Corner

Broker Madness! Part 5

We are continuing on with the platform for Interactive Brokers. Last week we went through putting on a spread with a condition and reviewed the different order types that can be used to enter a trade. In addition to the spread orders, we went through the risk navigator to learn how to hedge our portfolio using a beta weighting tool.

Traders Lounge 11 PM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cashflow Club 8:30 PM EST

Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.

Financial freedom is a journey

The Tackle Today series is brought to you by Tackle Trading.

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

# Sign up now for a 15-DAY FREE TRIAL #

Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.