Markets have been waffling up recently. Interesting move is the Bond market. Bonds have need dropping over the past couple of weeks and the investment community is trying to understand why. Are rates going up due to economic reasons? If so, the Bernanke QE2 is completely ineffective since rates should have dropped after the Fed moves several weeks ago. Some have suggesting rates Bonds are dropping since investors are selling and going into stocks. This is hard to verify in looking at the data.
Big question is Are we at the start of a steady drop in bond prices and increase in interest rates? While I mentioned a while back that the best investment in the future will be to Short Bonds. However, I still think it is a bit early for this since we are looking at more downgrades of European countries, which will make US Treasuries the investment of choice, and a number of US States should start hitting the Press as possibly going into default in the future - which would also cause a flight to Treasuries.
Since the Bond Market is fuzzy now, it might be prudent to implementing a Short Bond investment now. Rules prohibit me from making a specific investment recommenation on this site.
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