Bienvenidos mis ositos, tu siempre eres mis queridos! (Welcome back little bears you are always my dears!)

As you know dear readers I am always reading and researching so I can bring you interesting ideas and post.

Publish0x heckler: Ha ha Panda what’s on that other tab, seems like the only thing you’re researching is how  to get it on with Granny!

How did that get there? It must be one of those annoying pop ups!

Publish0x heckler: Ha ha I’m sure something was popping up. Don’t worry Panda, I don’t care about your dating preferences.

Well neither do I, you don’t see me bringing up your midget threesome.

Publish0x heckler: How dare you bring that up in public? I was drunk and I told you that in the strictest of confidence!!!

Now you know how I feel. Can you please be civil and let me get back on topic? Now where was I?

Oh yes, so I’m selling some Bitcoin and…

Publish0x heckler: Panda has the crypto winter driven you mad!?! Why would you sell your Bitcoin?

Well, I’m not selling EVERYTHING. I’m selling enough so I can raise enough funds for a future bond buying spree.

Publish0x heckler: Have you been hanging around with too many elderly ladies Panda? Why do you want bonds?!?

This is going to be one of those posts isn’t?

When you think of rich investors, who do you think of?

Warren Buffet? Stanley Druckenmiller? Cathy Woods (snicker, snicker).

Have you heard of Howard Marks?

Who?

Exactly!

He’s like Warren Buffett AND Sam Bankman-Fried combined of the Bond world.

I’m going through his last book called Mastering the Market Cycle…What is it now heckler?

Publish0x heckler: Aren’t you going to shill an amazon.com affiliate link here? What kind of influencer are you?

Can’t a guy share good information for free around here? What kind of crass cash grab writer do you think I am? I’m not here to exploit my loyal readers like that. They’re smart, unusually attractive, and generous.

I know this because they always leave nice tips at the end of my posts. Now where was I?

Ah yes, good ol’ Howard Marks. His writing may get a bit dry at parts but you can’t deny his wisdom.

He notes that during the good times you’ll find that credit tends to be more lax and borrowing money seems easy. This allowed disgraced firms like 3AC to make such levered bets in the crypto space.

Now we see the opposite, now that central banks has raised the cost of borrowing money banks and lending institutions have raised their STANDARDS. GASP!

That means deadbeat DeFi projects. meme stocks and donkey doo NFTs  have been left to die. Most of them don’t make any money. Most don’t even offer any convenience or value. Bonds aren’t perfect and not all will make money.

But as an asset class bonds can offer more predictable and reliable cash flow.

Publish0x heckler: But bonds are so boring!!!

Ah! But that’s why they can be so profitable.

In DeFi “code is law”, if you don’t pay back your loan your collateral gets liquidated to pay off your debt.

In the fixed income market “law is law” at least with jurisdictions like the good ol’ United States of America. In the event of bankruptcy, bondholders get paid back before shareholders.

Cryptocurrency as an asset class has been around roughly 13 years.

Bonds have been around since the 1300s (13th century!!!)

The global bond market is actually LARGER than the global stock market.

Weird huh?

You’d think that the bond market would get more attention/

When was the last time you watched a fixed income influencer?

Crickets

It’s probably the ticker symbols. With stocks or crypto you usually get a 3 or 4 letters symbol. With bonds though you get something crazy like AC234BU56.

Maybe it’s the size, some brokers have minimums of between 5 – 25 bonds. Assuming a $1,000 per bond that’s $5,000 to $25,000 just for one position.

Most bond dealers don’t even bother with retail, they deal with insurance companies or pension funds.

I guess the bond market has a built in moat to keep out the dim witted and the lazy.

Bonds are easier to calculate intrinsic value. They generally pay out semiannual interest payments (two times a year) and at their maturity date return their face or par value (usually $1,000 per bond).

Even with something “simple” like Bitcoin there’s no accepted valuation model. Do you use stock to flow, Metcalfe’s law or some multiple of gold?

Right now I’m not seeing that many great bargains yet like in 2008 and 2020 but keep your eyes peeled. Depending on how bad the recession will be we could see some good bargains in bonds. Imagine getting a dollar for fifty cents!

Then we can take profits and recycle back into Bitcoin and other favorite digital assets.

I can’t wait to write about and share these opportunities in the future!

Obviously none of this is formal financial or tax advice. You need to find qualified professionals in your jurisdiction.

Be sharp, stay hungry let’s get that money!