Tag "bonds analysis"

Bonds Run Out Of Gas; TLT Caught In Limbo

In the past five weeks, all things in the world of bonds have done a lot of running… but on the treadmill. The popular bond ETF, the iShares 20+ Year Treasury Bond (TLT) is essentially unchanged during that time (at $120.98). But if there was any movement, it was mostly to the upside. Once…

Are Treasury Bonds Problems Just Getting Started?

The treasury bonds market has experienced an uptick in volatility as investors try to figure out the dynamic between global interest rates, currencies, and economic growth. If you haven’t noticed, the moves overseas have also been volatile. Perhaps this is the prelude to change. And, if so, ts for treasury bonds may just…

US Treasury Yields On A Bumpy Ride To The Bottom

In a post back in February, we suggested that long-term bonds were ready to put in a substantial correction. That move now appears to be nearing completion, and it is unclear whether prices will retrace as far as our original target. This is reason enough to keep an eye on…

Bonds Selloff: Why Investors Shouldn’t Sell Into The Panic

Last week was a difficult week for those of us that own bonds. In particular, ETFs like the iShares 20+ Year Treasury Bond Fund (NYSE:TLT) and the Vanguard Extended Duration ETF (NYSE:EDV) were hit the hardest as bond yields jumped (which resulted in the value of our bonds going down). The…

Weighing The Global Economic Slowdown Into The Fed Meeting

Over the past several weeks I have spent a lot of time highlighting the global economic slowdown and how it will continue to drag on the U.S. economy. Country after country around the world is devaluing their currency, lowering their interest rates and/or performing some form of quantitative easing in an attempt…

Market Debate: Stocks or US Treasury Bonds In 2015?

Last week was a rough week for investors, especially those that were invested in US Treasury Bonds. It has been an especially volatile year so far for US Treasury Bonds. To recap: They surged into year-end 2014 and then continued to push ahead steadily throughout the month of January.  Stocks,…

Bonds Catch A Bid As U.S. Economic Data Remains Soft

Last week, my weekly commentary on the financial markets started with this paragraph: “The last two weeks the markets have rallied to new all-time highs. At the same time we have seen the yield on 10-year US Treasury bonds increase from a low of 1.6% to 2.15% yesterday. That is…

Bonds 101: Understanding the Price-Yield-Value Relationship

The incessant noise around whether to taper or not to taper got me thinking that it may be a good idea to cover off on some bonds investing 101. Afterall, there is a bit more to investing in bonds than just price and yield. Additionally, Korey Bauer has written a couple of…

Prospective Equity Risk Premium: A Glimpse Into the Future

By Allan Millar In my last article we considered historical risk premiums and explored means for quantifying Equity Risk Premium. Taking that one step further, we shall now turn our attention to calculating a prospective value of Equity Risk Premium (ERP). There is obviously no way to predict the future so…