27 June 2013

27 JUN 2013, Thursday

  • The age of ever lower interest rates is more than likely over.
  • Hat tip to the author (website on chart).
  • Sooo...the retiree's were screwed with ultra low interest rates for the past few years.  Many may have stretched their time frame out on the yield curve for the higher rates.
  • Unfortunately they'll now learn the hard way, about the inverse relationship between bond funds and interest rates.
  • As interest rates go up, the value of bond funds go down.  OUCH!


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