© 2017 Tweddell Goldberg Wealth Management

  • LinkedIn Social Icon
  • Twitter Social Icon
  • Google+ Social Icon
Please reload

Recent Posts

PODCAST - Money Life with Chuck Jaffe

March 26, 2019

1/6
Please reload

Featured Posts

The 7 Best Bond Funds for Retirement Savers in 2020

 

Investors in even the best bond funds that Wall Street has to offer might be in for a difficult 2020.

 

Much of the bond market, in my view, is in a bubble – just as tech stocks were in 1999. And bubbles always end badly.

 

Consider that in November 2019, $12.5 trillion was invested globally in bonds that have negative yields. That's down from a peak of $17 trillion in August, but that's still an absurd amount of money invested globally in bonds that have negative yields. That means investors are paying interest to a borrower to lend the borrower money — which is just as crazy as it sounds. Carl Weinberg, chief economist at High Frequency Economics, notes that a bond with a negative yield is worth less than "a bag of dirt in your basement."

 

What's more, at various points recently, long-term bonds have been paying lower yields to investors than short-term bonds – a phenomenon known as a negative yield curve, which is typically predictive of a recession sometime down the road.

 

The lesson is to keep bond maturities short. With bond yields so low, they almost have to rise unless we're entering a period of serious deflation, which seems a remote possibility. And when bond yields rise, total returns on shorter-duration funds will sparkle compared to likely losses on long-term bond funds.

 

Here are my seven best bond funds to buy for 2020, from least to most risky.


Continue reading the full article on Kiplinger.com here

Please reload

Follow Us
Please reload

Search By Tags