Fixed Income Investors: You Need to Read This!
April 18, 2010 by Editor · Leave a Comment
The big question on everybody’s mind these days is whether or not the end is near for the bond market. The answer is – not imminently. Nevertheless, we clearly see signs that long-term interest rates will be heading higher eventually given the massive federal deficits in the U.S. and our country’s reliance on foreign lenders. As such, it makes prudent sense to begin taking steps to help protect your portfolio against rising interest rates when they occur and this really boils down to TIMING. It’s important to understand how, when and where to make the right moves with your fixed-income holdings. Words: 975
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Earn Higher Income Yields with These 3 Alternatives
February 24, 2010 by Editor · Leave a Comment
By cutting the federal funds rate to a range of zero percent to 0.25 percent, the Fed has forced rates on short-term Treasuries, short-term certificates of deposit, and money market accounts into the gutter. You can’t earn squat on these safe, cash-like investments so where can you turn for the income you need? Words: 540
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Bond Market on Brink of Collapse
February 21, 2010 by Editor · Leave a Comment
Secretly, the Fed is in a panic to ward off a bond market collapse! They know that, sooner or later, they MUST send the message that they’re serious about cutting back on their mad money printing. The danger of course, is that foreign investors will get an entirely different message: that Washington’s efforts to fight the most severe recession since the Great Depression are waning. If that happens, you could see turmoil — not just in the bond market, but in every asset class imaginable. Words: 770
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Investing in Long Term Bonds Now a High Risk Investment
January 30, 2010 by Editor · Leave a Comment
In a search for safety and income, investors are stampeding into the apparent safety of government bonds and bond mutual funds. Over the last year, bonds have been purchased in record amounts despite historic low interest rate levels. It is likely that many of these investors do not understand the risks in bonds. These investors, with a false sense of security, are unknowingly setting themselves up for another rough rollercoaster ride ahead. Words: 599
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