If You Have Money in Bond Funds, Mutual Funds or Pension Funds, Please Read This Now

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If You Have Money in Bond Funds, Mutual Funds or Pension Funds, Please Read This Now
Bondholders: Protect and prepare your portfolio for a developing new trend

By Editorial Staff
Thu, 14 Jun 2012 16:30:00 ET

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Asked about the roaring stock market of the 1920s, U.S. Treasury Secretary Andrew Mellon offered a now-famous quote. Perhaps you've heard it.

"Gentlemen prefer bonds."

It's important to note when Mellon uttered these words -- namely, before 1931.

Why does the date matter?

Well, because after 1931, those bond-holding "gentlemen" were crushed.

Now, perhaps you’re curious about how an 80-year-old quote from a wealthy financier can apply today. If so, this story really is for you.

Robert Prechter summarizes why in his new, urgent Special Report for bondholders, published June 6.

In the Great Depression, interest rates on lower-grade bonds trended lower until 1930, and those on high-grade bonds continued lower until 1931. Then they soared, on fears of default. [The chart below], published in Conquer the Crash, shows what happened. (The chart shows rates inverted to reflect bond prices.)

Bondholders: Protect and prepare your portfolio for a developing new trend

On June 6, EWI's two flagship publications, Robert Prechter's Elliott Wave Theorist and The Elliott Wave Financial Forecast, joined forces to release an urgent report.

Anyone with interest in bonds should read this 10-page report. Get instant online access to it via a 30-day RISK-FREE trial.

Now, fast-forward to today …

Bonds have been in a bull market for decades. The most recent bond-investing craze amounted to more icing on the cake. In fact, the interest rate on the Treasury's 10-year note just fell to the lowest level in U.S. history. As you know, when bond yields fall, bond prices rise.

When stocks crashed in 2008, investors found shelter in bonds. Most months of the financial crisis saw investors transfer billions from stock funds and into bond funds. Moreover, they did this against the advice of most high-profile experts and advisors, who have hated bonds for the past 10 years.

Yet those betting against bonds have lost lots of money – especially since 2009 – even as investors holding bonds have gained.

All that is about to change, Prechter says in his new report.

Today, investors still spooked from the volatile stock market of the past five years have huge chunks of their lifesavings tied to the security of bonds.

If that describes you, that's why now is the best time to give this more-popular-than-ever investment strategy a second look.

Is your future financial safety tied to the security of bonds?
Are your mutual funds heavily invested in bonds?
How about your pension fund?

If you answer "Yes" to any of these questions, please read Prechter's new, urgent Special Report for bondholders. It could be the difference between your financial catastrophe – like it was for the "gentlemen" of the Great Depression -- and your financial safety for many years to come.

Interest Rates Matter to Everyone

Be one of the first investors to prepare for the major changes we see ahead for bond yields -- and interest rates -- going forward.

Prechter's new Special Report gives you the details over 10 pages and 13 charts.

Read it online now as part of your risk-free 30-day trial subscription to our Financial Forecast Service.

Start here, now -- risk-free >>

Tags: deflation, diversification, hyperinflation, inflation, Interest Rates, Robert Prechter, safe haven

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