As I mention in my video, the price of bonds (in general) have decreased causing yields to increase. The above graph shows comments from the Fed which has led so many people to have speculated they’d cut back on the bond buy back.
As of last month, the Fed Chairman has stated the bond buy back will stay in place.
For more graphs and a discussion, here’s the full article.
If you’ve been wondering if you’re the only person confused by what all the hub bub is about, this is your opportunity to get caught up.
That might sound good, but what it really means is that the prices are plunging.
Stay away from Greece and watch Europe closely.
Greek Bond Yields Surge – Link
One of the effects of a US Government downgrade is a municipal downgrade to follow.
If you’ve been following my newsletters over the past few years, you know I’ve advised you to watch your municipal holdings closely if you have any at all.
The free (relatively) capital market ultimately determines the cost municipals will have to pay to borrow money.
If the US Gov’t is downgraded (I argue when not if) then 7,000 municipal bonds will be automatically downgraed as well. At least according to Moody’s.
This really hurts retirees as they’re the largest part of this market.