Treasuries

How Safe are Bonds?

News flash: Investors who assumed their investments in conservative bonds and bond funds (Nasdaq:LSBRX) were safe from losses are learning otherwise. Since mid-2016, the performance for U.S. bonds (NYSEARCA:BND) with top credit grades have sunk almost 4%. For perspective, the 12-month yield on ETFs tracking the Barclays U.S. Aggregate Bond Index is just 2.40%. Put another …

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This Multi-Trillion Dollar Freight Train is Due for Arrival

This year’s presidential election has been so drenched with public bickering and controversy, it’s left very little airtime for the multi-million freight train that’s on course to crash everybody’s party: U.S. public debt. In July, the Congressional Budget Office (CBO) reported that federal debt held by the public skyrocketed to 75% of U.S. GDP compared to …

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Why the Debt Ceiling Deadline Isn’t That Scary

On Oct. 15, the sitting U.S. Treasury Secretary Jack Lew sent his warning letter to Congress to increase the U.S. debt ceiling “or else.” Should bond investors be scared? Here’s an excerpt from Lew’s letter to Congress: “Based on our best and most recent information, we now estimate that extraordinary measures will be exhausted no later than …

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Lagging Small Cap Warning Sign For Stock Market?

2015 Outlook: Wall Street Hates Bonds

It’s that time of year again. You know, the wonderful season when Wall Street’s strategists crawl out of their crevices to make predictions about the year ahead. What are they prophesying for 2015? Wall Street foresees grave danger and disaster in the bond market. (Audio) Listen to Ron DeLegge @ The Index Investing Show This …

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Government Overspending is Fueling Debt Boom

Each month, our Mega Investment Theme Report organizes the order of major events by their impact and importance. And swelling sovereign debt (NYSEARCA:BWX) continues to be a stubborn trend that has made every single report. In Ernest Hemingway’s classic novel, “The Sun Also Rises” someone asks the character Mike Campbell how he went bankrupt. He quips: “Gradually, then …

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$17.41 Trillion in U.S. Debt, like Stocks, at Record Levels

The Russell 2000 small cap index (NYSEARCA:IWM) just made a new all-time high, but stocks aren’t the only thing topping. U.S. public debt is at record levels too and heading higher. Total outstanding public debt is now at $17.41 trillion, according to the U.S. Treasury Department’s latest daily statement. That’s almost $1 trillion over last …

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Let the Spending Spree Begin!

Debt ceilings have done little to curb the U.S. government’s escalating debt load and if you thought overspending was a serious problem before, welcome to the next cycle. That’s because U.S. politicians just approved a bill that suspends the government’s borrowing limit until March 16, 2015. That means no more last minute showdowns about a …

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