27 OCT 2010, Wednesday (PM)

• Simply put...if you own US based bond funds, you are at risk.
• Yield can go lower, but not much lower.  The capital loss risk for the interest yield is absurd.  Especially, if the FED is telling you they want 2% inflation....why the hell are you going to loan the US Government money for 10 years at 2.5% interest when the goal is 2% inflation?
• Bernanke has created a trap.  There are no safe instruments.
• Honestly, I have no clue where things are headed but bond funds are in a tough spot to deliver further here.
• Frankly, I hope the Federal Reserve fails and we get some deflation.  Not wild deflation but a mild deflation would actually do more good for the economy longer term.
• Just my opinion.