Bond funds and bonds, could be real trouble! Before you know it, they'll boil and bubble!
The massive rush into the
bond market this year could be the top of a bubble that will sink many investors who believe (wrongly) that bonds are always a safe bet when allocating your retirefunds.
On the contrary, bonds can bubble like any other
investment, and that bubble is starting to become so obvious, a bust may be lurking as early as this fall.
The bond market is beginning to send out warning signs and you ignore those signs at your financial peril. Last weeks stock rally, as short as it was, came at the expense of the bond market, and in your case (retail investors) bond funds.
Anyone reading these posts knows full well my aversion (distaste, distrust and dissatisfaction) of the
managed mutual fund industry, and that, my friends, surely includes managed bond funds. (see:
Average investors getting screwed)
Those fund managers will make their outrageous fees until the exodous (which they will lead) when this market pops, and it will pop. You my friends, will be left holding the bag of worthless paper once more, unless of course, you get out now while the getting is good.
The first sign of any interest rate hikes will tip this baby elephant over the cliff.
Don't wait for that, because the big dogs will see it coming long before you do and they run a lot faster than you can.
“One of my top priorities next year is to have an energy policy that begins to address all facets of our over-reliance on fossil fuels,”
Image by Beverly & Pack via FlickrAmericans everywhere continue to espouse the view that they live in "the greatest country on earth". This is so ingrained in the American psyche that the words are spoken as a matter of fact, without question. It makes me wonder how the rest of the world views Americans who continue to believe this in the face of a creeping, almost overwhelming sense, that the American century has officially ended.
Right: One of the two operational lithium plants in Greenbushes Australia belonging to Talison Lithium Ltd. which have been operating for 25 years and currently supply 300 companies with lithium and lithium carbonate. Talison, up to this month a privately owned company, supplies approx 66% of Chinas imports of lithium.
