Category Archives: Forex Trading Tips

Stocks And Bonds: Don’t Count On The Great Rotation

After many false promises and one false start, it is becoming evident that 2017 will be the year the Federal Reserve finally begins down the road toward interest-rate normalization. Therefore, it is likely that Ms. will cause bond yields to rise this year on the short-end of the yield curve. In addition, soaring debt and deficits, along with the lack of central-bank bond buying, should send long-term rates much higher as well. Wall Street soothsayers, who viewed every Fed as a buying opportunity for stocks, are now […]

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Should You Buy A Bond Index Or Individual Bonds?

If you’re investing for retirement, chances are that you’ve bought some bonds. But did you buy yours individually or as part of a bond index? The difference may seem insubstantial. And for the last 35 years, it has been. But times are changing. The Fed is finally starting to pick up off the floor. Since bond prices are inversely related to yields, this nearly four-decade-old bull market in bonds may be coming to an end. There actually are some subtle differences between buying individual bonds and bond […]

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Speculating In T-Bonds | Investing.com

Several potentially negative influences may weigh on bonds in the near-term. And then again they may not. Hence the reason the title of this piece is “Speculating in Bonds” and NOT “SELL BONDS NOW!” What we are talking about is a speculative trade that might make a few bucks if bonds do decline but won’t break the bank if bonds rally instead. Two more important notes: 1) I am not “predicting” that bonds are about to decline. I will simply be highlighting several factors that suggest they […]

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Renowned Fund Manager Most Cautious In 40 Years

One of the world’s most venerable fund managers, Daniel Fuss, vice chairman of Loomis, Sayles & Company, recently spoke out against government bonds amid a litany of geopolitical uncertainties. Fuss, 83, has been in the finance game a long time and he’s never been quite as cautious on the bond market as he is right now. From Reuters: Have we ever been this cautious before? Not recently, said Fuss, who started his career in bond investment in 1958. “In my early days in the ’60s and ’70s, […]

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Bond Yields Are About To Break Out

The talking heads continue to say that yields on the cannot and will not trade above the 2.60 percent level. It should be noted that the 2.60 level has been resistance since December 2016. The support level on the yield chart since that time has been 2.30 percent. Currently, the 10-year U.S. Treasury yield is hovering around 2.37 percent. Many traders and investors are thinking that yields are going to fall further, but that’s just long-term consolidation. The high range of the chart’s consolidation range is 2.60 […]

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It’s Soon Or Never For Bonds

There is great trepidation in the bond market these days. Most investors seem to have the “interest-rates-are-sure-to-rise” mantra playing on auto loop. And this is not entirely unwarranted. Given the historical tendency for bond yields to move in long, slow trends (20 years or more essentially in one direction is not uncommon), I for one am pretty confident in believing that interest rates will be higher 20 years from now. But that is not the fear that is playing in people’s heads. The fear is that rates […]

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Using Metals To Trade Bonds

Sometimes things in the financial markets are pretty obvious if one is willing to see them. Despite all of the angst that has been exhausted since July of 2016 – when the Index broke out to a new all-time high – regarding the 2016 election, the economy, interest rates and the “ultimate” effect that all of it may have the stock market – the market has just kept chugging higher. This is not to say that everything can’t reverse and quickly, it is simply to note that […]

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Total Return Investing In Municipal Bonds

“The best bond values today will not be the best bond values next year and will certainly not be the best bond values until maturity.” – Sidney Homer, January 1973, Salomon Brothers study Sidney Homer’s statement from a study published 44 years ago still rings as true today, when the is yielding 2.2%, as it did in January 1973, when the yield stood at 6.4% and was heading much higher over the next eight years. Cumberland Advisors practices total-return bond management in most accounts. We have the […]

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