I’m announcing that the 32-year bull market in bonds is officially dead. Be prepared for the consequences from rising interest rates in 2014. They could be catastrophic for bond market investors.
There’s considerable dissension within the ranks at the Federal Reserve, with many of Chairman Ben Bernanke’s colleagues saying the Fed’s monthly purchase of $85 billion in bonds should end by late this year.
“About half” of 19 Fed members “indicated that it likely would be appropriate to end asset purchases later this year,” according to minutes of the June Fed policy-making committee meeting, released Wednesday.
Exchange traded funds (ETFs) have changed the face of investing for individuals as well as institutions.
These relatively new investment tools have made it easier to play sector rotations, go short the market or even leverage positions.
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