The rise in the price and the decline in yield on US treasuries has created what many are labelling a bond bubble. Currently, a 10 year treasury yields 2.61%.
It is our belief that bond market strength relates to a frustration on investor’s parts.
They turn to stocks and see a decade long series of flat performance. CD’s at rates that leave one wanting more also have led to bond perfomance.
At some point, the attractiveness of corporate balance sheets, solid dividends and earnings power will lead to higher stock prices.
For now though, bonds advance and stocks languish. It is easy to identify the best performing bond funds and deploy cash but that strategy will at some point backfire- investors should stay diversifeid with high yield, short term and strategic funds as part of the portfolio.
Articles
- Uncategorized (8)
- Commentary (188)
- Columns (107)
- CBS 6 Answers Team (3)
Documents
-
Subscribe
Archives
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
Bond bubble
Monday, August 23rd, 2010
| « Golf | Breaking News » |
| « Golf | Breaking News » |
Entries (RSS) and Comments (RSS).
Any specific stocks named in this presentation may not be representative of current or future investments in the portfolio to which they belong. You should not assume that investments in the securities identified were or will be profitable. We will furnish, upon your request, a list of all securities purchased, sold, or held in the portfolio during the twelve months preceding the date of this presentation.
Please note that all data is for general information purposes only and not meant as specific recommendations. The opinions of the authors are not a recommendation to buy or sell the stock, bond market or any security contained therein. Securities contain risks and fluctuations in principal will occur. Research any investment thoroughly prior to committing money or consult with your financial advisor. Please note that Fagan Associates, Inc or related persons buy or sell for itself securities that it also recommends to clients. Consult with your financial advisor prior to making any changes to your portfolio.
©2009 Fagan Associates, Inc. All rights reserved.