Posted on 09/26/2009 3:37:11 PM PDT by underthestreetlite
A rapid rebound in credit markets this year has lured Americans into putting more of their savings into bond funds, which has helped push prices higher and bring in more cash. High-yield corporate bonds have jumped nearly 49% this year. If investors expect a repeat performance, they're in for an unhappy surprise, said Ashish Shah, Barclays co-head of global credit strategy. "There's money coming in from investors looking for the next 49% to happen, and it so obviously isn't going to happen," Shah said.
The problem for bond buyers is actually a good thing: the start of robust economic growth
(Excerpt) Read more at forbes.com ...
No, Mister Bond, I expect you to die!
I’m heavy in bonds but am ready to jump. Just where is a bit of a dilemma.
Barry?
People who bought good bonds at low prices will continue to receive high interest on their money. Isn’t that good enough for them?
Ashish Shah????
Scary.
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Yikes! I am 70/30 stocks, since bonds are hovering around 0%.
I have recouped all my losses from last year and am starting to gain again.
Dude, are you kidding?
Silver. Rare Earths. Water infrastructure.
Or, if you must remain wrapped in fake paper like a financial mummy, BRIC is still outperforming everything American.
I don’t see the economic rebound as ascribed in the title. The nations wealth has been spent. The guys in charge want to mandate even more taxation with no way to justify it. As sim city might say, Obama I can’t afford this anymore.
Look at history. Whenever the S&P 500 fails to reach reasonable valuations during a bear market downturn, the subsequent rally is short-lived and followed by a plunge to a level where valuations are reasonable. I’m not looking for a good return in bonds, I’m protecting principal for what I expect will be a dive to the basement in stocks. I’d buy gold, but it too is currently overvalued.
Gold and Silver commodities?
The DJIA is going down to about 3800 next year.
Not to mention the coming credit card debt bubble burst. I think the author is overly optimistic.
I’m not kidding. I have a gold hedge but after losing 1/3 of my money I got somewhat skiddish on the stocks.
Um, you lost 1/3rd on your gold hedge, or on your stock portfolio?
I'll say it again:
Silver. Rare Earths. Water infrastructure. And oil straddle options if you have lots of cahjones and day trader time.
I doubt it.
Things are bad but not that bad.
If you honestly believe that, you should be 100% in Gold Bullion.
Stocks. The Gold Hedge actually began in 2004. The 1/3 loss is stocks only. The gold was about 20% of portfolio but is up substantially. Alot of it evens out. I still feel as though I have lost by not taking action sooner.
Rare Earths.
Water infrastructure.
Invest in Rock 'n Roll, baby!
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