Crashes always seem to come out of nowhere. But, in hindsight, we realize that all the elements for a crash were in place months before prices fell.
The Fed’s decision to stay on a path of raising rates will have implications throughout the interest-rate world, including the high-yield debt market.
Being hungry for yield-related assets is one thing. Throwing all caution to the wind when seeking yield is another.
I don’t know when the bear market in bonds will start, but I do know that investors will suffer terrible losses when it happens.
The Fed is allowing big banks to treat municipal bonds as safe, high-quality assets for emergency reserves. But once you’ve read up on Ramapo, New York, “safe” no longer comes to mind.
Investors cheered for the Fed’s first rate hike in nearly a decade, but it’s about to turn ugly. Learn what sector the rate hike is set to kill…