What the Bond Market is Saying

We all know that interest rates are in an uptrend as the Federal Reserve has and will continue to consistently raise rates. That, of course, is the death knell for bonds. However, something recently happened on the way to the forum.

US Treasury bonds have hardly moved in over a month, despite yet another 25 basis rate hike by the Fed with more on the horizon.

That may seem like a godsend; however, it’s not. If bonds don’t drop as interest rates rise, it could mean three things:

  • There is a recession looming, even if we don’t see it yet.
  • There will be no major legislation that will be enacted into law this year (i.e.   health care, tax reform, additional deregulation, or infrastructure spending).
  • “Sell in May and Walk Away” might be a real threat this year.

It’s still too early to tell and I’m ready to throw in the towel. It is likely that this is just a normal correction in a strong, but aging, bull market. So be sure to plan ahead the same way we do for our clients.

If you would like to learn more about our disciplined investment and planning approach that manages risk and delivers returns while being conscious of forward-looking tax-strategies, give me a call for a free no obligation consultation today.

Cheers -Keith Springer
916-925-8900

Smart Money Newsletter

Written By: Keith Springer

Baby Boomers vs. Millennials – Who had it worse?

Every generation likes to think that they had it worse and the “good old days” were when they were kids. Most of us baby boomers, who are now retirement investors, consider millennials entitled and think they should shut up, grow up and start making some money without complaining. On the other hand, millennials say their […]

Read the full post



Is this the Best of Times for Investors …or the End of Times?

Word on the street especially among retirement investors is that it doesn’t get any better than this. With unemployment at a meager 3.8%, GDP growth approaching 4% and corporate earnings through the roof, that is hard to argue against. However, it’s my job to check under the bed for monsters, because we have been here […]

Read the full post

SUBSCRIBE TO OUR NEWSLETTER TO RECEIVE EXCLUSIVE NEWS AND UPDATES.

Supporting our Community:

Keith can be seen on: