Bond interest rates are at historic lows in response to the Federal Reserve’s efforts to stimulate the economy. Over six years ago the Fed took actions to stimulate the economy by reducing short-term interest rates to near zero and reducing longer-term interest rates through a bond buying […]
Read more →Gary Shilling, economist and author of “The Age of Deleveraging: Investment Strategies for a Decade of Slow Growth and Deflation”, forecasts a market crash in 2013. In a January, 2013 Forbes article, Shilling says we could see an S&P 500 decline to 800 in 2013. (S&P 500 […]
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It’s not new news that interest rates are at historic lows. As I write this post the 10-year Treasury rates are 1.7%. That means the government is paying bondholders $17 per year for each $1,000 it borrows. At the end of 10 years, the government will return […]
Read more →1) Bonds can reduce portfolio risk by reducing volatility. Creating a portfolio is like putting the pieces of a puzzle together. Portfolios are built by assembling portions of stocks, bonds, and cash. Portions of real estate and commodities may also be added. Modern portfolio theory taught us […]
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