That’s a great POV to hear from you first hand. I’d be considered about how it could affect the kidneys. Did you happen to get regular blood checks before, during, and after that period?

Yes i think it’s mainly the feeling to not have bought enough when prices were lower 😅

On DCA:

Do you also have the urge to stop your next dca order from beeing executed when the price rises like this? 🤔

Not to stop completely, but to start again when prices drop.

There could be a number of reasons why the free market, or the Fed would decide 10% is too high. Could be that the issuer has become more creditworthy/less risky. Or in the case of when the Fed decides, it’s about making the cost of money cheaper to have a more liquid economy.

As for you 2nd question, the price of bonds and the coupon rate have an inverse relationship. If the price of the bond goes up, then the coupon rate goes down and vice versa. And the reason is bc the coupon (the fixed stream of income) doesn’t change. So the coupon is fixed, the price goes up, that means now you are getting less of a percentage from the face value of the bond.

I shared this thread on the other app bc it’s very important to understand the basics of bonds to understand what happened this weekend, and to understand what happens in the financial system in general. If you don’t understand these basics then you’re missing out.

What are Bonds?

Think about bonds as “fixed income.” You literally loan money to the government to receive a fixed amount of income every year.

So if you loan $100 to the govt at a yield (coupon rate) of 10% then what’s fixed (the coupon) is the $10 a year that the govt pays you. That’s a fixed stream, every year the govt is paying you $10.

Now if the “free” market decides that 10% is too high, and you want to sell your bond in an auction let’s say you can sell your bond for $110 now. Well the stream of $10 a year remains fixed (coupon), but the YIELD (coupon rate) has now gone down. Bc $10 from $110 is less than the original 10%. Price of the bond went up, the coupon rate went down.

And if less ppl want your bond then you’d sell it for a loss for say $90. And the coupon rate would go up.

The coupon rate normally has to do with how creditworthy (trustworthy) the market perceives you.

Higher coupon rates are cheaper bonds (as we discussed), so 3rd world countries normally have cheap bonds with high coupon rates bc there’s a higher risk involved for the lender.

1st world countries normally have expensive bonds with lower coupon rates bc they are perceived as creditworthy.

Risk is a big factor as rates rise.

I hope this helps you get started in understanding bonds if you’ve been wondering how they work. Obviously this is a very small definition but a great place to get started. Hope you enjoyed 🤙

Nostur TestFlight update

Come and look 🤷‍♂️💜

Gotta get my lazy ass to do some push-ups. Every 50 sats you send is 1 push-up

Bully me into working out

A little concerned for no coiner friends tbh

These are futures, basically market expectations of what the Federal Reserve will charge for short-term borrowing

But also some folks are buying short term bonds (presumably as a safe haven, better to have Uncle Sam owe you directly than support you via informal guarantees in FDIC)

It's future expectations of Federal Reserve action

The Fed should only cut gradually after killing inflation or suddenly in a financial panic

This enormous shift is basically GFC baby one more time

They are scared to admit that they might be wrong…

The tables will turn slow, then really fast 🤷‍♂️💜🫶