5 reasons to buy bonds again
Don't worry, we aren't headed for a secular bear market in these investments. Here's why you can jump in.
After a long, pleasing ride of income plus price gains, the bond market decided the party was over. It only took four months for the 10-year U.S. Treasury note to drop the equivalent of over five years' interest. All but the shortest maturities suffered similar fates.
Judging by the size of the 2013 yield adjustments, the Fed effect has mostly or completely dissipated. We can see the effect by looking at the new steepness in the yield curve. Anchored in the Fed's near-zero short-term rates, longer yields are significantly higher. In absolute terms, the new yields look appropriate to current economic/financial conditions and inflation outlook.
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1)Japan Sale Tax going to first 8% than 10%
2)National Debt over $18Trillion and soaring
3)Global Debt Soaring
4)Fed Balance sheet Soaring
5)Unresolved Problem of $500-700Trillion in Scam Banking Derivatives
6)$4Trillion in Corporate Debt Due over the next 4 years
7)Record Margin Debt
8)Record Student Loan Debt
9)Massive China Credit Bubble
10)Europe Unemployment still over 12%
Invest carefully, understand your goals, how long before you need the money, when will you retire. We hopefully invested carefully, needed retirement income, needed money when we both were retired (2007).
We are presently in REIT's, Corporate bonds, index finds and annuities. Average percentage of income as a total is close to 5.75%. The only issue is the REIT's are gaining very, very little however we make about $900.00 a month with these. The principal has held it's own since 2008.
We look at our investments twice a year with our financial advisor and only tweak when it is prudent to do so. Will our strategy work for every one? Difficult to say however knowing the markets direction is tantamount to good investing. We learned years ago that investing is for the long haul and not quick hits on the new investment just coming on stream.
Check out the replies to our posts, folks. Those IDs are financiers touching YOUR money and really LOUSY ones at that. Day after day after day after day of undermining. Why? Because it's been a SCAM since Day One. Close the banks, end the Fed (they vote soon on how to prevent future Fed's from bailing big crappy banks without the authorization and sign-off of the Treasury Secretary... won't that be nice for once?) and let's GET RID of Wall Street. We need AMERICA back and progressing, we need financiers digging ditches and cleaning port-a-potties again.
Sheldon Adelson made more than $40 million A DAY in 2013. 90 million Americans were driven into destitution or suppressed to remain there. Let's RECOVER skill sets and competence. Let's dig a hole and BURY the 20th Century and it's racketeer society.
More Kool Aid. It's a FACT that bonds are incredibly toxic, tainted by ridiculous amounts of fake money, oversold and under-performing. If bonds are the home you live in and half the nation got to walk away or sell short of full settlement... what else could those bonds be but JUNK? Nothing that exists financially newer than 1999 has substance or stability. The only reason why this article appears today is because bond holders need new pigeons to replace them in the gone-bust line.
We lost everything in this Greed Run. We owe outrageously-- billions in artificial QE and $700 trillion syndicated debt (yes, that's right... look it up under- derivatives) and all we have to show for it are BIG platforms that won't pay family-sustaining wages, but retain colluding alumni to maintain a job blockade against those of us with skill sets and competence and force us to live indentured and in destitution.
Don't buy bonds, locate people like Sheldon Adelson who made more than $40 million A DAY in 2013 racketeering as a casino mogul, or the Walton Clan who have more assets (money) than 130 million other Americans, or the Koch Brothers who are insane terrorists funding our stagnation and lack of progress throughout the nation.
Time for CHANGE. You had better believe it.
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