Are You Trapped in a Bond Fund?

Last week I showed you how bond funds are trapped (The Fat Lady is Singing in the Bond Market HERE).

Today, I’ll show you why the Bond Alternative is an easy way to lower your risk while investing.  So, instead of worrying during bad markets, you’ll sleep peacefully.

Historically bonds have been a safe investment.  You know, buy a bond (or bond fund) and collect the interest.

What could be simpler?

But the game has changed.

Interest rates today have never been this low.  NEVER…And bond prices are the highest in history.  There’s way more downside risk than upside.  Yet money keeps pouring into bonds.

Why?

Investors want higher yields and they’ve been fooled into thinking that bonds are still safe.

Nothing could be further from the truth… here’s why.

Lower interest rates have a devastating effect on bond funds.

Example:  In order to compete, fund managers have to find higher yields.  But how do you find decent yields when the 30-year Treasury bond is currently around 1.7% – last February it was over 3%.  And who wants to tie up their money for 30 years?

This forces managers into taking more risks – including buying junk bonds, which puts your money at risk.

It’s a recipe for disaster.

But what if I can show you how to get a yield similar to your bond fund without the risk of being trapped?

Who wouldn’t want that?

The bond market is now the biggest bubble in history.

We believe the bubble popped last September with the REPO market meltdown.  Since then, the boyz in the “Club” are holding it together with duct tape and bailing wire.

Are you willing to wait and take the chance of being trapped in a bond fund?

Read about The Bond Alternative in our March Newsletter (HERE)

You’ll Thank us later.