Yesterday....
WASHINGTON, Nov. 12 (Xinhua) -- The International Monetary Fund (IMF) warned on Thursday that the global economy faced risks of persistently sub-par growth, calling on the G20 countries to take structural reforms to avert risks.
Yesterday....
WASHINGTON, Nov. 12 (Xinhua) -- The International Monetary Fund (IMF) warned on Thursday that the global economy faced risks of persistently sub-par growth, calling on the G20 countries to take structural reforms to avert risks.
Ghost of Igloi wrote:
Yesterday....
WASHINGTON, Nov. 12 (Xinhua) -- The International Monetary Fund (IMF) warned on Thursday that the global economy faced risks of persistently sub-par growth, calling on the G20 countries to take structural reforms to avert risks.
well sure there are risks. always are. but subpar growth is still growth.
one more thing about hussman - he said treasury yields were falling - that's not true anymore - they have risen.
And yeah credit spreads might be up a little but barely - something like 20 bps on the year. hardly a flashing red light.
agip,
If a year from now I am talking about the same thing you can remind me of how wrong I was.
In the morning I will hit the foothills for a run, do a little fall yard clean-up, and forget about the markets for 24 hours or so (until Asia opens Sunday).
Have a good weekend.
Igy
Ghost of Igloi wrote:
agip,
If a year from now I am talking about the same thing you can remind me of how wrong I was.
In the morning I will hit the foothills for a run, do a little fall yard clean-up, and forget about the markets for 24 hours or so (until Asia opens Sunday).
Have a good weekend.
Igy
You too friend.
Think fast thoughts on Sunday - I'm hoping for a solid result in a local 5k. I've had some good recent results so I'm hopeful.
agip,
What are you shooting for?
Igy
well in public I'm saying 17:45 to keep expectations low, but if the course is flat and I have a good day I think 17:30 is possible. I'm 48.
agip,
That is a very good time for age 48. My best as a youngster was 13:51 3 mile (age 23, 1974) and 18:02 5k track as a masters (age 55, 2006). Last Thanksgiving at age 64 I ran 24:12 in a road 5k and was so disappointed I haven't raced since. It probably drove me to post on Let's Run! Training is much more complicated once you hit your sixties, at least for me. I have to do more cross training and have much less room for error. Its like buying investments at a market top.
Good luck on your race. Oh to be 48 again!
Igy
holy cow you were fast. I was never anywhere near that quick. Yet.
Next time I'm in Idaho let's go for a run in the hills.
agip,
Thanks, the 18:02 was the top US age group time that year. I am more of a long distance guy though. I was 13th in Boston in 1974 (2:19:15). I think my best masters age graded performance (86+) was a 10:24 indoor 3k at age 55.
Unfortunately, I am a little bit overweight and a lotta-bit out-of-shape currently. I have arthritis in the right hip, not bad, but enough that I have to be careful in what I do.
Igy
agip,
If you come to Idaho you let me know. I will take you on a good foothills run and buy you lunch.
Igy
Ghost of Igloi wrote:
McDonald's hit a new all time high on this news that it will borrow money to buyback stock at record high stock prices. The news will be cheered by the street but the logic of the move has only short term implications. At some point the borrowed money will have to be refinanced at higher interest for shares that have fallen in price.
I pity the fool that buys the stock.
Igy
Why would the have to refinance?
Sally V,
Most of the recent bond issuance for stock buyback have been in the 5-7 year range. Apple and Google have the ability to issue bonds at longer term with low interest rates, most would not. Of course in my comments I am assuming a rising interest rate environment. I would use IBM and CAT as examples of how this strategy has backfired.
Igy
How much cash does Mickey D's have on their balance sheet?
Sally V,
I do not know off hand. My concern was the company announced bond issuance, if I recall correctly, $30 billion for stock buybacks and dividend distributions.
Igy
So they don't "have" to refinance.
Sally V,
Pull the MCD 8K and see if your assumption is correct.
Igy
I didn't make an assumption. You're the one who said they would have to refinance their debt.
Sally V,
I will answer it for you, wrong, they will have to refinance. Currently MCD has $2 Billion in cash and $17 billion in long term debt. Here is an article questioning MCD's strategy from May of this year.
http://www.reuters.com/article/2015/05/21/us-buybacks-funds-mcdonalds-idUSKBN0O52P320150521
Igy
But why would they have to refinance their debt? Why would they want to, if it's borrowed at low rates? It makes no sense.
MCD's debt to capital ratio is 53.84. They will not need to refinance any debt at higher rates.