My Portfolio: April 2012

Quick post:

1. I pulled out of Treasuries about a week after my last post, when there was the first inkling of a sell-off.  I hadn’t realized that if bonds are really popular now and become less popular in the future, you’ll lose money if you’re invested in a bond ETF.  I think that’s how that works.

2. I also learned that the borrowing cost of Groupon is so high (~100% of the stock’s value per year) that you can’t just hold it for 5 years and wait for the company to go bankrupt.


At the moment I’m just doing a lot of macro-level reading, trying to figure out what’s going to happen in the market over the next few years.  I’m worried that there’ll be another crash like in ’08 because there’s so much bad debt out there that could knock over a bank and cause another forced sell-off.  I want to learn more about exactly why the ’08 crash happened.