In a rather botched post last night I was trying to make a point about 401-k's and the baby boom generation. Let's say your late 40's or early 50's and you have socked away a considerable amount in a 401-k. Even with a balanced portfolio you realize that the equity portion of the portfolio has a considerable downside risk---when does it make sense to shift out of equities and take a nice safe 5 3/4% or more return. If that option is available to you. If business planning is strictly a short term global shell game; maybe you ought to hold on to your pea.
Your email pal,
Tom L.
Enrique Diaz-Alvarez wrote:
> Enrique Diaz-Alvarez wrote:
> >
> >
> > If that's the case, then ten coupon passes, anywhere from 1/2 to nearly
> > 2 billion $ apiece, in the span of less tan a month, with no sales of
> > T-bills that I am aware of, _seems_ pretty significant, does it not?
> >
>
> Sorry about going over limit. This site
>
> http://www.briefing.com/intro/tour/bonds/glossary/ball1.htm
>
> has a full description of the Fed open market operations. It says that
> coupon passes occur about eight times a year. If so, ten coupon passes
> in less than a month is a very significant deviation from standard
> practice, and absent any other explanation does seem to give off a whiff
> of panic. Or am I missing something?
>
> --
> Enrique Diaz-Alvarez Office # (607) 255 5034
> Electrical Engineering Home # (607) 272 4808
> 112 Phillips Hall Fax # (607) 255 4565
> Cornell University mailto:enrique at ee.cornell.edu
> Ithaca, NY 14853 http://peta.ee.cornell.edu/~enrique