Over the past few years, some highly respected economists have been alarming investors with their predictions that the Federal Reserve’s quantitative easing (QE) program fuels inflation. When inflation heats up, interest rates rise, and investors who own both stocks and bonds see the value of their bonds fall.Read More
Inflation can have a dramatic impact on investors that own bonds. Bond-holders don’t like to see, the costs of goods going up faster than what they are receiving in interest from their obligations.
In 1994, Bill Clinton’s political adviser James Carville famously said, “I used to think that, if there was reincarnation, I wanted to come back as the president or the pope, or as a .400 baseball hitter. But now I would like to come back as the bond market. You can intimidate everybody.”Read More
Add ex-Federal Reserve Chairman Alan Greenspan to the list of experts warning about a bond market bubble. Speaking in late July to Bloomberg News, Greenspan warned, “Equity bears hunting for excess in the stock market might be better off worrying about bond prices…Read More
There is much talk in the financial press about Central Banks imposing ‘negative interest’ rates—which adds yet another oxymoron to a list that includes ‘Great Depression,’ ‘jumbo shrimp,’ and ‘open secret.’Read More
Why the Supporters of Bernie Sanders and Donald Trump are Foretelling the End of the 35 Year Bull Market in Bonds
The current presidential race shows populist sentiment within the country. In the Republican Party, it is represented by Donald Trump, while Bernie Sanders is the progressive vessel for Democratic Party voters.Read More