But where there is pain, there is opportunity. Soon, very soon the 10 yr will yield over 3% and those of us heavily in cash might just start to trickle back in. Until then, keep your wounds clean so infection doesn't set in.LOL!
Why would you trickle in at the start of a cycle. Interest rates will rise to long term average 6.75% and may go substantially above that due to the derranged policy of easy money the past few years. The great bond bear market has just started and ussually last 25-30 years. We are just starting and best bet is an etf fund that is ULTRA shorting, best investment I made was TBT at $60 in May, 2013. No downside risk and has upside to $250 is rates go back to long term average. If it goes higher this could go to $500.
interest rates 6.75% ???????? ...but how can that be in an economy that is not recovered? if you mean that they're saying unemployment is better based on only one fact, that there are now less unemployment claims? sure there are less claims; because there are less people working which means less people qualify to even make unemployment claims, and the ones that could already have done exhausted their unemployment funds. All of that was just a parlor trick to get voters to think Obama's doing a good job, that he's curing the economy. but the truth couldn't be more further, the truth is more people are not working in usa than ever. as for your tips on TBT, am watching. it's up. but pa-lease knock it off with the 6.75% #$%$. this is 2013 and just look around you, things look better to you????????????????????
At 6.75% the US gov't, states, counties and cities are all bankrupt. The western world ceases to exist and there is nothing but chaos and revolution in the developing world. Don't think it will get even close that. If the 10 yr gets to 3.5 I am buying.
The interest rate prediction that I've seen is for 3% tops--the economy can't handle more than that. The money printing hasn't hurt us because most of that money has gone overseas. Don't bet on massive inflation.