Bond market crash? Why retail investors should stay out of bonds – Forbes

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This episode from What’s Ahead describes why investors shouldn’t buy bonds. The great bond bull market that started in 1982 is over. If you have bonds in your portfolio, make sure they don’t go beyond three years.

Although interest rates have risen slightly in recent months, they are still at levels never seen before in recorded history.

Rates will rise as the economy recovers from the pandemic and the Federal Reserve begins to seriously print money to help pay for Joe Biden’s spending spree.

Arithmetically, this will mean lower bond prices.

In addition, the interest rate differential between treasury bills and low-quality corporate debt is far too narrow, given the risks involved.

It is best to get out of bonds or make sure they are short term. You won’t get much return, but you will avoid painful losses.

Follow me on Twitter. Send me safe advice.

Steve Forbes is President and Editor-in-Chief of Forbes Media. Steve’s latest project is the “What’s Ahead” podcast, in which he features the world’s top journalists,

Steve Forbes is President and Editor-in-Chief of Forbes Media. Steve’s most recent project is the ‘What’s Ahead’ podcast, in which he engages top journalists, politicians and pioneers in business and economics in honest conversations meant to challenge traditional conventions and introduce Steve’s views on the intersection of society, economics and politics. . Steve helped create the recently released and highly acclaimed public television documentary, In Money We Trust?, which was produced under the auspices of Maryland Public Television. The film was inspired by the book he co-wrote, Money: How the destruction of the dollar threatens the global economy – and what we can do about it.

Steve’s latest book is Relaunching America: How Obamacare Repeal, Tax Code Replacement, and Fed Reform Will Restore Hope and Prosperity co-written by Elizabeth Ames (McGraw-Hill Professional). Steve writes editorials for each issue of Forbes under the headline “Fact and Comment.” A highly respected economic prognosticator, he is the only writer to win the prestigious Crystal Owl Award four times. The award was once presented by the US Steel Corporation to the financial journalist whose economic forecast for the coming year has turned out to be the most accurate. In 1996 and 2000, Steve campaigned vigorously for the Republican nomination for president. Key to his platform was a flat tax, medical savings accounts, a new social security system for working Americans, parents’ choice of schools for their children, term limits and a strong defense. national. Steve continues to vigorously promote this program.



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