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On the other hand it is not likely that interest rates will remain this low for very long. How much money can be poured into 30 year bonds with less than a 2%
by betterunix2 5y ago
On the other hand it is not likely that interest rates will remain this low for very long. How much money can be poured into 30 year bonds with less than a 2% coupon rate? How long will the Fed continue its asset purchase program? How much more supply can be added to the bond market before demand begins to run out? One way or another interest rates will begin to rise, and then the stock market will be forced to correct.
We have had a 40 year bull market in bonds, but that is almost certainly coming to an end. There is just no more room for that bull to run.
- mmmmkay 5y agoWhile I don't disagree with you, another thing Buffett has said is, we can't predict what interest rates will be in the future, so why bother? You can only invest given the information you have today.