Start of a lost decade for bonds?

In a recent article on Investment News Net’s website, they ask an important question:
As investors turn to fixed income, primarily bonds, as a safe source of funds are they creating the next problem?

From the article:
“given today’s historically low interest rates, large budget deficits and the risk of inflation, one wonders whether investors are making this asset allocation choice at the beginning of what may ultimately prove to be a lost decade for bonds. In particular, the fixed-income asset class most favored during the financial crisis for its safety and liquidity — the Treasury bond — may face an unusually high level of interest rate risk in today’s environment because of its long duration. ”

The article continues to speak about the pricing of bonds and with the current historically low rates, and the threat of rising rates, how consumers going to bonds may not see any interest – even within the next decade. What does this mean to you?!? Now more than ever your clients need safe-money solutions!!

For the complete article click here: http://www.investmentnews.com/article/20100725/REG/307259999

Happy selling, stay focused.

Matt
http://twitter.com/advadvisor
866.363.9595 ::: matt.neuman@advisorsexcel.com

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