Will Bonds Ever Again Pay Sustainable Income?

Investors drive rates down, too

Inflation expectations aren’t the only factor that make rate projections so difficult. The Fed, investors and economists alike are confused about how to respond to diverse and seemingly contradictory economic signals. Investors act impulsively, seeking the lower risk of bonds, when slower growth seems imminent. Sudden demand for Treasury bonds can rapidly drive down yields.

Mixed and contradictory signals on the economy makes interest rate policy more arbitrary and difficult to project. Erratic behavior by investors, rushing into bonds and then pivoting into riskier assets when the economy signals continued growth, impacts interest rates in ways that can’t easily be anticipated.

Small-cap winners galore

The big stock market winners share one common attribute: Near the beginning of the ascent of their shares, the companies offer revolutionary products or services, are market leaders in their respective industries, or both. Some big stock market winners that possessed the attributes outlined above are Netflix (NFLX), which we recommended to investors in October 2002; Intuitive Surgical (ISRG), which we bought and recommended in July 2004; Baidu.com (BIDU), which we bought and recommended in August 2006; and MercadoLibre (MELI), which we recommended to investors in October 2010. Get up-to-date small-cap stock picks from David Frazier, editor of Small-Cap Profit Confidential.
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Smarter cryptocurrency investments

The stock market crash of 2008 was the catalyst for his journey into alternatives. And interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. Keene Little wasn’t ready to risk his money yet but he was very curious, so he began charting Bitcoin’s technical patterns. What finally convinced him to dip a toe into digital currencies was seeing that they followed familiar price patterns that could be analyzed and successfully acted on. Now he shares those insights with subscribers to the Crypto Wealth Protocol.
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