“We’re from the Government and we’re here to help you.” Bond investors are beginning to wonder if that is still the case. Quantitative Easing, Open Market bond purchases, extended unemployment benefits and disability payments. Is this economic stimulus or financial repression? The fate of interest rates and bond prices appear to be under the direction of the Federal Reserve. This in turn has kept borrowing costs low. Some aspects of the economy appear to have benefitted. Then they mention the “Taper” word and all of a sudden the “safe haven” of bonds doesn’t seem so much anymore. Newsletter 9-30-2013
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