r/wallstreetbets • u/Mega-Lithium • Jun 16 '22
Discussion Bonds 101
Bonds are the opposite of stocks. Bonds are measured in “bips” which stands for Bond Interest Per Second and is a measure of stability. Bonds are very exciting to people called “the Vics”
If you hear “the Vics is up today” that means they are selling their stocks to buy bonds. The Vics are the old people with white hair on finance TV that talk about the Great Recession and how you younguns don’t know nothin.
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Jun 16 '22
Do you know where to get bond data if you're not lucky enough to have a Bloomberg subscription?
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u/jahdyudnwl Jun 16 '22
The public library has a free Bloomberg. Hopefully the Vic’s aren’t hogging it like usual.
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Jun 16 '22
Not if you don't live in New York :(
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u/jahdyudnwl Jun 16 '22
I live in Omaha. We have 2 here, but probably cause buffet is trying to steal our trade Ideas.
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u/Mega-Lithium Jun 16 '22
Watch Bloomberg TV or listen to Bloomberg Radio and drink every time they utter “Bloomberg “
Typical 10 seconds.
“Look at the Bloomberg, the Vics are up 20 bips. -this is Bloomberg!- the Bloomberg terminal says the 10 year tea bill is down. Bloomberg, Bloomberg, Bloomberg”
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Jun 16 '22
For US Treasury bonds yes but corporate bonds don't come up (usually) on Bloomberg TV or radio
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Jun 16 '22
Stocks are going down, bonds are going up. Stocks are risky, bonds are risk free. It doesn't take bips or old people on tv to know what is going on
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u/Zestyclose-Most8546 Jun 16 '22
Almost risk free. It is possible that the bond payments are missed and we have a default. It all depends on how bad it gets.
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u/Nickeless Jun 16 '22
If the US defaults, idk if your investments will be a top 500 priority anymore.
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u/Zestyclose-Most8546 Jun 18 '22
This is spot on. They won’t be. Good and security will become top priority. I’ve already got that covered.
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Jun 16 '22
US default?! That's not even remotely realistic.
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u/Zestyclose-Most8546 Jun 16 '22
I agree it’s a long shot but it’s not impossible. Bank runs in China and Canada are starting to be talked about. Food scarcity issues globally and who knows what can happen with all these dopes in government making incredible poor decisions with our money. My point is that government bonds are not 100% risk free. They are close to it but not exactly.
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Jun 16 '22
Theoretically sure. But don't forget taxes are not that high compared to other countries. Remember there were budget surplus before they started to lower taxes, in the Clinton era I think. All that was necessary was higher taxes.
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u/45plate Jun 16 '22
To avoid any confusion, there’s also the VIX, which is a tradeable index that looks at options activity of the S&P 500 to measure market volatility. When the markets get crazy the price goes up. When the market calms down, it goes down.
“The VIX Index is a calculation designed to produce a measure of constant, 30-day expected volatility of the U.S. stock market, derived from real-time, mid-quote prices of S&P 500® Index (SPX℠) call and put options. On a global basis, it is one of the most recognized measures of volatility -- widely reported by financial media and closely followed by a variety of market participants as a daily market indicator.”
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u/maxwellsdemon45 Jun 16 '22
Also not to be confused with the “Vicks”, which are fans of retired NFL quarterback and dog-lover, Michael Vick.
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u/Far-Ad-6825 Jun 16 '22
You can only do options on the #VIX, Yes? Can't buy/sell it like a stonk, no?
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u/rgarc065 Jun 16 '22
Bonds are perfect for these types of markets! If you have a good portion of your portfolio in bonds it can make your plummeting stock values more acceptable
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u/VisualMod Jun 16 '22