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Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

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Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#41

Post by b00ty4breakfast »

rdtsc wrote: post #25
oulipo2 wrote: post #5

Earlier quoted context omitted.

Symbolism has importance

Exactly but it has to be recognized as such. It’s easy to fall into self delusion and make it into some “oh yeah this will be collapse of the US empire, finally” story. Not, that it also fun to go with that story, but as long as everyone in the room understands it’s sort of a wishful fantasy.

We might, in hindsight, see this as the first signs of the fall but anyone expecting a global empire to just collapse like a building, even in the accelerated pace of the modern world, is going to be disappointed.

This will take years, possibly a decade or more...if the US is, in fact, collapsing.

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#42

Post by heathrow83829 »

zppln wrote: post #9

What are some realistic alternatives to US markets here? Selling is one thing, the question is what to buy instead? I mean, everyone starting to buy european instead would be great for stock prices, but it wouldn't make the underlying assets more valuable, right?

i've wondered this myself. I thought that everyone was selling bonds and just buying equities, gold and bitcoin. isn't that only game plan? bonds aren't investible anymore for anything more than 5 year time horizon.

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#43

Post by blitzar »

loeg wrote: post #29
toomuchtodo wrote: post #18

Earlier quoted context omitted.

Sovereign debt of a more politically stable nation state or other monetary union, if you are investing at these levels. If you're an individual, you have more options, although there will be fierce debate about the risk profile (as US Treasuries were historically considered to be risk free). https://www.bogleheads.org/forum/viewtopic.php?t=449401

Which nation states might you consider more politically stable than the US, even now?

Iran

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#44

Post by pxeger1 »

Sytten wrote: post #27

The problem is that Europe doesn't have a European bond market to compete against the US bond market. It has the economic size and stability but not the will right now. Europe did try it a bit during COVID but financial services are just not there yet. The Euro very well become a reserve currency in a multipolar world if Europeans decide they want to shoulder it.

Is it at all realistic to expect the stable and/or fiscally conservative countries to accept the high bond yields imposed by the more fiscally loose or perceived-risky countries? Could this ever happen without the EU centralising more control over fiscal policy?

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#46

Post by tgv »

jakobnissen wrote: post #4

A brief search suggests this is around 1/4000th of the total US treasury market, so if this has any significance at all, it's symbolic.

But it might also signify (as in: be a symbol) that European funds are less willing to buy future US bonds, which has a more dramatic impact.

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#47

Post by zeroonetwothree »

ectospheno wrote: post #40

An equally valid headline is "Investors purchased $8B of US Treasury Bonds". Never really got the point of people announcing US Treasury sales like its a big thing. Someone else not thinking with their emotions can, and will buy them. Its like announcing publicly you are selling your Honda. Its your Honda bro, sell it.

The classic “Sir, this is a Wendy’s”

Or if we want to be cynical, they hope the price will drop on this news and they can buy back in more cheaply.

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#48

Post by nemomarx »

dwa3592 wrote: post #45

They can start buying Euro bonds, Gold, bonds for the great european companies like ASML, Airbus etc?? they can basically find a way to invest in their future, right? they just need to figure out the right financial vehicle?

They could just reinvest the 8 billion in all the other stuff they're holding, but something like those if they want to keep the diversification ratios high. Maybe the Yuan or Chinese companies?

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#49

Post by zeroonetwothree »

deadbabe wrote: post #6
jakobnissen wrote: post #4

A brief search suggests this is around 1/4000th of the total US treasury market, so if this has any significance at all, it's symbolic.

Every waterfall begins with a drop.

But 99.99% of drops do not cause a waterfall

Re: Swedish Alecta has sold off an estimated $8B of US Treasury Bonds

#50

Post by Braxton1980 »

loeg wrote: post #29
toomuchtodo wrote: post #18

Earlier quoted context omitted.

Sovereign debt of a more politically stable nation state or other monetary union, if you are investing at these levels. If you're an individual, you have more options, although there will be fierce debate about the risk profile (as US Treasuries were historically considered to be risk free). https://www.bogleheads.org/forum/viewtopic.php?t=449401

Which nation states might you consider more politically stable than the US, even now?

Almost every 1st world country has a more predictable and honest leader right now
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