Where do you find investment income when money market funds and bank deposits yield so little? When Federal Reserve policy sees to it that funds in the banking system are kept so artificially low?
We know this will eventually produce enormous inflation but what does it do for those who need investment income today and are trying to invest for tomorrow in an economy where corporate earnings are being stifled by anticipated higher corporate taxes and federal regulations.
The financial media does a poor job answering this because they fail to educate the public on the proper use of corporate bonds.
And in doing so, they never fully discuss the use of duration, which helps overcome the risks of upcoming inflation and future higher interest rates. ( See the Earl J Weinreb NewsHole® comments.)
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