The Lurking Danger Behind Ultra-Low Interest Rates
The quest for higher yield can lead to a damaged portfolio.

By Bob Stokes
4/22/2013 5:30:00 PM

Risk-averse investors who depend on fixed income have been hurt by ultra-low interest rates. To make ends meet, many resort to riskier vehicles like bonds. Some fixed-income investors have been sold on the idea that bonds are relatively safe compared to stocks. But The Wall Street Journal recently noted that, "Safety has rarely been more expensive -- or more dangerous." Learn about two risks that bond investors currently face.

Filed Under: Elliott wave, Interest Rates, junk bonds, money markets, municipal bonds, Robert Prechter, Treasury bonds, treasury yields, U.S. STOCK MARKET

Category: Interest Rates

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The Tortoise is About to Cross the Financial Finish Line
Slow and safe wins the race

By Bob Stokes
1/4/2013 5:00:00 PM

It's true that a Treasury-bill account yields next to nothing. But at this financial juncture, the well-known saying of humorist Will Rogers has never been more relevant: "I am more concerned with the return of my money than the return on my money." Learn why Bob Prechter says that embracing financial risk because interest rates are low can be a trap.

Filed Under: all the same market theory, Bear market, conquer the crash, derivatives, Elliott wave, history, Interest Rates, investment strategy, long-term trend, market forecasts, mutual funds, personal finance, risk management, Robert Prechter, safe haven, social mood, stock indexes, Treasury bills (T-bills), treasury yields

Category: Classic Prechter

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The Trap is Set for High-Yield Bond Investors
"Junk" bonds have that name for a good reason

By Bob Stokes
12/12/2012 5:45:00 PM

Low interest rates have attracted a swarm of yield hungry investors into junk bonds. Learn why these investors may have stepped into a soon-to-shut trap.
 

Filed Under: all the same market theory, credit rating, debt, Elliott wave, Interest Rates, junk bonds, risk appetite, Treasury bonds, treasury yields, U.S. Treasuries

Category: Interest Rates

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Why Billions in Bond Portfolios May Soon Evaporate
Muni and junk bond investors rush in when it may be the worst time

By Bob Stokes
11/15/2012 6:00:00 PM

Many who have recently rushed into muni-bonds fear the tax hikes that will be triggered if lawmakers go off the "fiscal cliff." Junk bond investors, on the other hand, want high yields. However, EWI sees financial danger ahead for bond portfolios. Learn why.

Filed Under: all the same market theory, credit rating, deflation, economic indicators, Elliott wave, Interest Rates, junk bonds, municipal bonds, risk appetite, Treasury bonds, treasury yields, U.S. Treasuries

Category: U.S. Economy

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Unsuspecting Bond Fund Investors Are Set Up for a Shock
Why risk in the rebalanced portfolio is ramping higher

By Bob Stokes
9/7/2012 5:00:00 PM

You can learn about a striking parallel between the bond market of 1929-1932 and today and what to expect next...

Filed Under: deflation, diversification, economic indicators, Elliott Wave Theorist, Interest Rates, investment strategy, investor psychology, junk bonds, market forecasts, money markets, municipal bonds, mutual funds, sentiment, Treasury bonds, treasury yields

Category: Interest Rates

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When Will the Fed Raise Interest Rates? When the Market Says So
The Federal Reserve Bank's interest rate policy is not as "independent" as most people think

By Vadim Pokhlebkin
8/30/2012 5:15:00 PM

You probably know what event dominates this week's U.S. economic calendar: the August 31 Federal Reserve chairman Ben Bernanke's speech at the policy meeting in Jackson Hole, Wyoming.

Filed Under: Ben Bernanke, monetary policy, Treasury bills (T-bills), Treasury bonds, treasury yields, U.S. Federal Reserve (the Fed)

Category: U.S. Economy

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If You Think Bonds Are a Conservative Investment, Think Again
Bond investors beware of deflation's impact on yields

By Bob Stokes
8/29/2012 4:45:00 PM

Elliott Wave International believes that economic contraction is set to accelerate. What does deflation mean for bond yields in the months ahead?...
 

Filed Under: Bob Prechter, deflation, economic depression, economic indicators, Elliott wave, inflation, Treasury bills (T-bills), Treasury bonds, treasury yields, U.S. Treasuries

Category: Interest Rates

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Do Rising Treasury Yields Signal An Economic Recovery?
Back in June, our joint-issue Elliott Wave Theorist/Elliott Wave Financial Forecast Special Report revealed that the trend in interest rates was "poised to reverse." Today, the 10-year bond yield stands at a 3-month high.

By Nico Isaac
8/20/2012 5:00:00 PM

Back in June-July, the mainstream financial experts were certain of one thing: "The next big move [in US Treasury yields] is lower, not higher." YET -- from their July bottom, 10-, and 30-year Bond yields have RISEN to their highest level in 3 months. Turns out, our joint-issue June 2012 Elliott Wave Theorist/Elliott Wave Financial Forecast foresaw a major snag in the long bond bull market ahead...

Filed Under: Bob Prechter, Elliott Wave Theorist, treasury yields

Category: Interest Rates

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Bonds' Long Decline: Will Yields Continue To Fall?
A recap of how EWI's analysis foresaw the 2011-12 reversal in the 30-year T-bond yield

By Nico Isaac
7/19/2012 5:00:00 PM

Ask yourself this: Were you prepared in early 2011 for the powerful reversal in 30-year T-bond yields? To be exact: From their Febrary 2011 peak, 30-year yields plunged 40%-plus to the historic lows we see today. One thing's for sure: Most of the mainstream analysts were NOT.

Filed Under: Bear market, fundamental analysis, inflation, social mood, U.S. Federal Reserve (the Fed), treasury yields, U.S. Treasuries

Category: U.S. Economy

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Bonds and the Era of Deflation: A Safe Alternative to Stocks?
Special Report: A just-published 10-page urgent warning to bond investors

By Bob Stokes
6/7/2012 5:45:00 PM

The bull market in bonds has been going on for decades. The most recent bond investing craze merely heaped more icing on the cake. In fact, the interest rate on the Treasury's 10-year note has just fallen to the lowest level in U.S. history. Will bond investors continue to be rewarded?...

Filed Under: debt, deflation, economic depression, Elliott wave, Interest Rates, junk bonds, market forecasts, municipal bonds, risk management, safe haven, Treasury bills (T-bills), Treasury bonds, treasury yields, U.S. Treasuries

Category: Interest Rates

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Special Report from Prechter: 10 Pages on the Most Underreported Financial Story of 2012
It's time for the blunt language you'll read in this report

By Robert Folsom
6/7/2012 12:30:00 PM

But what is even MORE astonishing is how universally UNEXPECTED this crash in yields has been. Since 2008, the entire Wall Street-Economist-Media complex has predicted higher yields and inflation, based on two reasons...

Filed Under: credit rating, Elliott wave, Interest Rates, junk bonds, Robert Prechter, safe haven, treasury yields, U.S. Treasuries

Category: U.S. Economy

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