This weekend an interesting article appeard in the Columbus Dispatch in the business section. It was titled "Bond-Lovers still buying despite risk, stock highs." In a recent month investors put $32 Billion into Bond Mutual Funds. This becomes a potential issue when interest rates are at all time record lows. Do you think that interest rates one, three or five years from now will be lower or higher than they are today? Can they get much lower? Can they get much higher? Is there upside interest rate risk? What happens to existing values when rates are rising? Simple economics answers that question. Existing prices fall when interest rate rise. The article further states "With Bond prices rising and interest yields at historic lows the risk has picked up significantly" The article is worth reading!
When customers wish to minimize their risks Safe Money products might be a logical part of a financial portfolio. Asset diversification is always very important.
Did you know that there are products that can guarantee lifetime income without any market risk?
I'm not telling anyone to buy something or to sell anything. I'm just sharing a nice article worth reading.
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