Straight Talk Wealth Radio

The Death of Bonds in a Negative Interest Rate World

September 08, 2019 Season 2019 Episode 13
Straight Talk Wealth Radio
The Death of Bonds in a Negative Interest Rate World
Chapters
Straight Talk Wealth Radio
The Death of Bonds in a Negative Interest Rate World
Sep 08, 2019 Season 2019 Episode 13
Bruce M. Weide

If what Alan Greenspan says is true, we are heading into a whole new uncharted world of financial planning and asset allocation. In this episode hear Alan Greenspan in Sept of 2019 declare:
1.) The US GDP is driven by the US Stock Market! (The OPPOSITE of how it has ever been).
2.) Negative Interest Rates WILL COME to the U.S. It's only a matter of time!

This changes absolutely everything for retired investors and savers. It means:

  • Asset Allocation is gone! The component of Safety (bonds and bond funds) are going to earn so little they will be irrelevant to a portfolio. You will have to PAY for safety.
  • The only place to be will be RISK-ON! But the very reason we are heading into low interest rates is to prop up a sagging market, which now has the very power to change the health of the US Economy by it's volatile swings.
  • Every retired person, no longer working, will have lackluster portfolios unless they are willing to live their retirement on the precipice of Risk.

In this episode Bruce discusses alternatives to bonds that can bring balance back to retirees portfolios when bonds and bond funds become impotent.

Show Notes

If what Alan Greenspan says is true, we are heading into a whole new uncharted world of financial planning and asset allocation. In this episode hear Alan Greenspan in Sept of 2019 declare:
1.) The US GDP is driven by the US Stock Market! (The OPPOSITE of how it has ever been).
2.) Negative Interest Rates WILL COME to the U.S. It's only a matter of time!

This changes absolutely everything for retired investors and savers. It means:

  • Asset Allocation is gone! The component of Safety (bonds and bond funds) are going to earn so little they will be irrelevant to a portfolio. You will have to PAY for safety.
  • The only place to be will be RISK-ON! But the very reason we are heading into low interest rates is to prop up a sagging market, which now has the very power to change the health of the US Economy by it's volatile swings.
  • Every retired person, no longer working, will have lackluster portfolios unless they are willing to live their retirement on the precipice of Risk.

In this episode Bruce discusses alternatives to bonds that can bring balance back to retirees portfolios when bonds and bond funds become impotent.

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