The bond market is absolutely nuts – devoid of any common sense. Back in the days when professors used chalkboards, and actually taught classes, I studied Business Economics. We learned how capital and labor come together to produce goods and services, create jobs and profits. If capital was needed, you could borrow and pay interest. Interest is the rent you […]
» Read moreRealizing you are wrong about a basic belief is tough. The last two weeks we discussed “The Bond Fund Risks Your Broker Won’t Tell You” and “Closed-End Bond Funds, Friend or Foe?” We concluded holding top-rated bonds is OK – individually, not in a publicly traded fund. Fund managers, chasing high returns, take risks I’m not comfortable with. If bonds […]
» Read moreHistorically, funds holding investment-grade bonds have been considered a safe investment. Lending money to hundreds of well-known companies had little chance of major default and provided interest income. Has your broker mentioned new risks emerging? Bonds ratings fall into two major groups, investment grade and high yield (called junk bonds). The bond rating generally determines the interest rate borrowers have […]
» Read moreI’m reading some scary headlines about the bond market crashing. Most Crowded Trade in Bonds is a Powder Keg Ready to Blow Goldman Says U.S. Bondholders Risk a $1.1 Trillion Hit if Rates Spike Bond Traders Suffer Worst Rout in Three Years as Selloff Deepens It sounds like bad news, but could it be good news for your retirement portfolio? […]
» Read moreIf I had $1 for all the times I’ve said, “What is this world coming to?” I wouldn’t have to worry about retirement money. I just shake my head when I read things like a teacher shaming a mom for sending her 4-year old to school with a couple of Oreos. Baby boomers and retirees feel the world is upside […]
» Read moreThe fairest tax of them all is the lottery. It is voluntary, it is not levied; you are not forced to buy a ticket. It is an adult choice. Recently the Powerball lottery changed the game by adding ten numbers. The odds of winning rose from one chance in 175,223,510 to one in 292,201,338. Let’s put that in perspective. The government […]
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