Last week, the Fed chose to not raise interest rates. That decision will continue to render traditional bond investments unattractive, holding them to extremely low yields.
Just looking at the returns being generated by the largest bond funds shows you'll go hungry depending on bonds for income and total returns.
There is one way bond yields will go up... but it's not good. Here's what you need to know.
Last week, the Fed chose to not raise interest rates. That decision will continue to render traditional bond investments unattractive, holding them to extremely low yields.
Just looking at the returns being generated by the largest bond funds shows you'll go hungry depending on bonds for income and total returns.
There is one way bond yields will go up... but it's not good. Here's what you need to know.
Start the conversation
Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
However, bonds could break those laws of financial physics in the New Year - and in a big way. That could inflict some real financial pain on the U.S. recovery, the dollar, the shuddering housing market - and could even ignite a major stock-market reversal.
The U.S. Federal Reserve continues to hold rates on U.S. Treasury securities to artificially low levels - a strategy central bank Chairman Ben S. Bernanke just this week said the Fed intends to adhere to for the foreseeable future.
Start the conversation