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!