Once again the economists demonstrate that they know what works and why it works. Any Economics Textbook will tell you this! Many economists have been talking about a bond bubble. AS the interest rates rise in the USA the price of municipal bonds has to take a dive. I was reading an article today which indicated that Municipal bond prices for existing bonds and bond funds have dropped 7-8% since May 2013 (At least in several key funds and indexes). So much for the promise of bond safety!! Any Economics Text book can show you this!!!
What other factors come into play here. Detroit Bankruptcy, Chicago Downgrade, Federal Deficits, Federal out of control spending, Bureaucratic incompetence in DC, Fear of Fed Tapering, The ongoing rise in interest rates.
There are products that can truly protect you from market risks!
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