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The Compression Continues

The Compression Continues

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With the Fed controlling the fixed-income markets, the collateral effect has been to remove any sort of value in the appended credit markets, and there is no “absolute value” and no “relative value” left in almost any bonds. The main result of this is that bonds no longer serve their historical purpose of providing a steady stream of cash flows and yields that are positive to inflation.

...read full article on Seeking Alpha

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