US Interest Rates: A Look at the New Normal From The Bond Squad

US Interest Rates

Portfolio strategists, pundits and investment company sales people have (for years) warned investors that, eventually, interest rates will return to normal. Bond Squad does not disagree. Portfolio strategists, pundits and investment company sales … [Read more...]

Why is a Properly Diversified Fixed Income Portfolio so Important Today?

strategy-compass-ss

We have a decidedly middle of the road view on growth and inflation (both should be positive, but moderate). As such, we favor neither long-duration nor short duration strategies. A long duration strategy can leave investors exposed to significant … [Read more...]

3 Ways 2012 Changed the Investing World Forever

investing lessons

2012 has been a very interesting year for the bond market, with many lessons for investors.  Here are the top 3 ways we think the year changed the investing world forever: 1) Guaranteed Positive Returns Disappeared: Retirees and Near Retirees Are … [Read more...]

What the Fed’s New Policy Means For Bond Investors

The Fed Balance Sheet

Last week the Federal Reserve, made a very unusual announcement. It declared that it would could keep interest rates low as long as unemployment was above 6.5% and inflation was below 2.5%. As of the end of November 2012, the unemployment rates … [Read more...]

Why are Bill Gross’s Number 1 Picks not Part of His Total Return Fund?

Bill Gross Investment Ideas

What are Bill Gross’s Best Investment Ideas? Picks Commodities like Oil and Gold U.S. Inflation-Protected Bonds High-Quality Municipal Bonds Non-Dollar Emerging-Market Stocks Pans Long-Dated Developed-Country Bonds in the U.S., … [Read more...]

How the Size and Composition of the Bond Market Has Changed Since 1980

bond market size

Since 1980, the size of the US bond market has increase by 15 times, in terms of the outstanding debt by par value. In terms of the market value of the debt, the number is likely even higher. US Bond Market Size 1980 - $2.54 Trillion 1990 - … [Read more...]