Category

Treasury Bonds

Bonds

Here's Why High-Yield Bonds Are Much Riskier Than Most Investors Realize

This method of measuring risk on high-yield bonds isn't just wrong – it ensures investors a bad outcome.

Find out why (and how to avoid this trap) here...

Bonds

Why Investors Are Buying Negative-Yield Bonds

Negative-yield bonds are the next crazy result in a global economy turned upside-down by central banks.

Here's how these bonds work and why some investors are buying them...

Bonds

What Are Junk Bonds?

The word "junk bonds" gets thrown around a lot, and investors mainly know about these investments because of the high returns that are promised.

But what exactly are junk bonds, and should one be in your portfolio?

We break down everything you need to know, and we also have alternative investments that you need to be aware of if you want to protect your portfolio...

Bonds

Rich or Poor, You Can’t Ignore U.S. Treasuries in Today’s Markets

There are a good number of investors who believe that U.S. Treasuries – notes in particular – are bad for you and even worse for your money at the moment.

Why really doesn't matter… rates might rise, deflation, a bond market bubble, there's too much debt… they're riskier than you think, goes the argument.

All of those things are, well… true. Yet, I submit U.S. Treasuries are the one investment you cannot afford to be without at the moment for three reasons.

So grab a cup of joe and let me share something with you that escapes 99% of all investors.

Bond Market

Why the U.S. Treasury Market Is No Longer Safe

The U.S. Treasury market is worth more than $12 trillion. It's believed to be the safest market in the world. Whenever there's a panic and the markets freak out, investors dump stocks and buy Treasuries. That's the so-called "flight to quality."

However, back on Oct. 15, when the last flight to quality exploded, the U.S. Treasury market failed to do what it had always done.

It failed to be safe - and nobody's talking about it...

Emerging Markets

The Search for Yield, Emerging Markets, and a Wacky Divergence

Let's talk a little more about divergence – as in wacky divergences.

Last time, we looked at divergence through the lens of interest rates and how rates – principally measured by the yield on the U.S. Treasury 10-year note – were going lower when they were expected to move higher as the Federal Reserve tapers its monthly bond purchases.

But there's another divergence at work, and it strikes me as dangerous.

We're talking about the rising prices of emerging markets stocks and bonds...

Income Investing

Three "Dead Money" Investments, Plus One "Living Large" (Part II)

Yesterday we looked at what may now be the single greatest risk to your retirement dreams – a seemingly benign 1% move in the 10-year Treasury yield. (See Part I.)

So now I'm going to show you what to do about it…

Remember, if we're going to keep increasing our wealth at a significant pace, we need to make a big adjustment.

Only a handful of companies can grow your money by 10% or more a year now. I'm going to show you three of them.

But please, before you buy these shares…

Sell your "dead money."

There are three brand-new forms of it.

The first one is obvious, but I'm going to cover it anyway. Any cash you have tied up in this asset will be in "zombie zone" far longer than anyone thinks. And millions of American investors own the other two investments.

Perhaps you own some of these companies, too.

Either way, beware…

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