Stretching the High Yield Rubber Band
The 10-Year Treasury note recently pierced below the all-important psychological 2% level (1.97%), which has confounded many investors, especially if you consider these same rates were around 4% before the latest mega-financial crisis hit the globe.
U.S. Treasury Bonds Outperforming S&P 500
Experts expected bonds would begin declining this fall in anticipation of the Fed beginning to raise interest rates, its next step toward normalizing monetary policy. Instead, U.S. bonds have continued to rally as a global safe haven.
Bonds Persist in Their Warning About the U.S. Economy
Here Comes the Great Rotation… Finally?
With bonds offering lower and lower yield possibilities, there are still plenty of opportunities in stocks, especially in high dividend-paying equity investments. Outside of the U.S., many global equity markets are offering significantly higher yields than bonds.
The Party Is Likely Over for U.S. Treasury Bonds
U.S. Treasury bonds have become seriously overbought and overextended above their long-term 200-day moving average. In addition, the Fed is expected to begin raising interest rates, possibly as early as June, which would be a negative for bonds.
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The Bond Rally is Not a Good Omen for the Stock Market
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It was expected that the Fed’s tapering back of QE bond purchases would be a big negative for bonds once it began. Instead, bonds have been in a rally since the Fed began that tapering process.
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Investing Mostly In Bonds Could Mean A Scaled-Back Lifestyle In Retirement
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What you must give up in your lifestyle to avoid market volatility is not worth it for most retirees. Make sure your portfolio asset allocation is set appropriately and well diversified across all...