The U.S. Treasury department issues debt obligations, including long-term bonds. U.S. bonds range in length, from short-term to very long-term. U.S. bonds are debt obligations by the government. The government issues U.S. bonds for current spending needs, with the intention to pay back the total plus interest over the life of the debt instrument. U.S. bonds are quite important as many other interest bearing securities are priced off this heavily traded security. Since many investors around the world watch the rates of U.S. bonds for signs of economic strength or weakness, it is important for all investors to be aware of the interest rate environment.
U.S. Bonds was last modified: September 7th, 2013 by admin
As it stands, gold has a huge “sale” sign on it. Mark these words; the yellow metal is presenting a great opportunity.
When looking at the precious metal, investors have to think long-term, and not about where the prices will be next week or next month.
Right now, gold seems significantly undervalued for three main reasons; uncertainty.
Over the past few years, buying bonds was the trade. Be it government bonds, municipal bonds, or high-yield corporate bonds. Thanks to the Federal Reserve, every time interest rates were lowered, or every time there was an announcement of new quantitative easing by the Fed, bond prices soared and investors in those bonds made a lot of .
According to the Investment Company Institute, investors have been taking money out of U.S. equity funds since April of this year.
Between April and July of 2014, investors pulled $32.0 billion from long-term stock market mutual funds that invest in U.S. stocks. While August’s monthly figures are not available, looking at weekly.
Don’t buy into the notion that there’s economic growth in America!
We’ve already seen U.S. gross domestic product (GDP) “unexpectedly” decline in the first quarter of 2014, and now there are signs of another contraction in the current quarter. (The technical definition of a recession is two negative quarters of GDP—we’re.
For a moment, consider yourself a loan officer at a major bank. Would you approve a loan for a customer who says they earn $1,000 a month, spend $1,300 a month, and don’t have a job? They also tell you they have unpaid debts of $17,000.
I don’t think anyone would authorize that kind of loan because the chances of getting the money back are.
Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.
Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.