Bill Bonner: Avoid This Popular Stock in 2014…

“All eyes have been fixed on the stock market in 2013.  But one of the most significant moves has happened in supposedly ‘safe haven’ bonds.  Mom & Pop investors who rushed out of the stock market and into bond funds have been burned.  In 2013, investors holding the iShares Barclay’s 20+yr Treasury Bond ETF lost 13.5%.  This is strange, because the Fed has been supporting the long end of the Treasury market with $540 billion of Treasury bond purchases under QE3.  If this is how long-bond investors are rewarded with the Fed set to buy another half trillion dollars of long bonds next year, it doesn’t bode well for bond bulls.  Our advice: Steer clear of T-bonds in 2014.”

http://www.bonnerandpartners.com/avoid-this-popular-stock-in-2014/

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