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  • Member You - Why are Bonds Losing Value?

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    llow computerized asset allocation models.

    But WHY is this all happening? And why NOW?

    Let’s face it; the Fed has been raisin

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    We know that bond prices, like anything else with a price, can be tracked on a point and figure chart. We can also monitor the relative strength of bonds, just like we do with stocks. Also, when bonds in general gave a relative strength sell signal over two years ago, we knew that this group would likely perform poorly, when compared with the rest of the overall market.

    It’s important to know that a large rise in rates can be just as devastating or catastrophic as a stock market crash to many investors. Especially investors who blindly follow computerized asset allocation models.

    But WHY is this all happening? And why NOW?

    Let’s face it; the Fed has been raising

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    trength of bonds, just like we do with stocks. Also, when bonds in general gave a relative strength sell signal over two years ago, we knew that this group would likely perform poorly, when compared with the rest of the overall market.

    It’s important to know that a large rise in rates can be just as devastating or catastrophic as a stock market crash to many investors. Especially investors who blindly follow computerized asset allocation models.

    But WHY is this all happening? And why NOW?

    Let’s face it; the Fed has been raisin

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    ew that this group would likely perform poorly, when compared with the rest of the overall market.

    It’s important to know that a large rise in rates can be just as devastating or catastrophic as a stock market crash to many investors. Especially investors who blindly follow computerized asset allocation models.

    But WHY is this all happening? And why NOW?

    Let’s face it; the Fed has been raisin

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    e rise in rates can be just as devastating or catastrophic as a stock market crash to many investors. Especially investors who blindly follow computerized asset allocation models.

    But WHY is this all happening? And why NOW?

    Let’s face it; the Fed has been raisin

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    llow computerized asset allocation models.

    But WHY is this all happening? And why NOW?

    Let’s face it; the Fed has been raising rates for well over a year now! Why didn’t bonds start collapsing back then?

    Could it be there is no confidence in the new Fed Chairman? Could it be a “proxy” on the current President’s administration? Could it be a resurgence of inflation? Could it be the ongoing struggle between the dollar and the other currencies around the world? Could it be the fact we are getting mixed signals about the economy…where the “man on the street” sees no improvement, but yet, economists see signs things are picking up? Maybe it is a combination of all

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