Saturday, October 29, 2011

Investing For Income

Money market funds and bank deposits yield so little when Federal Reserve policy sees that funds in the banking system are kept artificially low.

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 high 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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