U.S. Bonds

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.


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…

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…

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…

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…

The strong jobs market report last week started the chatter again that the Federal Reserve would start to reduce the pace of its quantitative easing program. Some have said the Fed will reduce the amount of its asset purchases as…

The International Monetary Fund (IMF) expects the global economy to increase by 2.9% this year and 3.6% in 2014—forecasts which I believe are too optimistic. Why? First of all, we have the Japanese economy, the third-biggest in the global economy,…

The “Bernie” Madoff name became famous while the stock market was falling during the credit and financial crisis. He was responsible for running one of the biggest Ponzi schemes in U.S. history—if I recall correctly, it was a $65.0-billion scheme.…

Late last year, the concept of the “Great Rotation” became popular. The idea behind the Great Rotation was simple: the theory was that once the bond prices started to decline, investors would take their money out of bonds and put them…

Investors beware: the bond market is treading in very rough waters. The sell-off we have seen of U.S. bonds might just lead to more troubles ahead for the bond market. Just take a look at the chart below. Thirty-year U.S.…

There’s a lot of talk about economic recovery these days. Mainstream economists are saying the U.S. economy will continue to grow, and the stock advisors are telling investors to buy on dips because everything is headed upward. Their arguments are:…

It hasn’t been too long since I started to warn readers of Profit Confidential about what might happen in the U.S. bond market. (See “Bond Market Shows Signs of Weakness Ahead.”) As I have said many times before, the sell-off…

There has been increased volatility in gold bullion prices as investors run from precious metals. According to data compiled by Bloomberg, gold bullion’s 60-day historical volatility reached 28.9% on June 13. This was the highest level since December of 2011.…

This shouldn’t be a surprise to the readers of Profit Confidential. According to an analysis done last week by the Wall Street Journal, in the first quarter of 2013, corporate earnings growth of companies in the key stock indices like…