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Investment, Fred Schwed Jr.

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Speculation is an effort, probably unsuccessful, to turn a little money into a lot. Investment is an effort, which should be successful, to prevent a lot of money from becoming a little. ― Fred Schwed Jr. , Where Are the Customers' Yachts?: Or a Good Hard Look at Wall Street

Bond bubble may be closer to popping

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English 한국어 With the stock market heating up, there is growing concern that the long-lasting bond bubble might finally be ready to pop. As major stock indexes like the Dow and S&P 500 soar to record highs, investors are confidently leaving the safety of bonds to chase higher returns in equities. Consequently, the yield on the 10-year U.S. Treasury note has climbed past 2 percent, hitting an 11-month high. As the economy slowly recovers, this shift toward riskier assets is likely to continue. Adding to the shift, the Federal Reserve is expected to halt further stimulus measures, paving the way for long-term interest rates to climb naturally. Market strategists predict a steady rise in yields, potentially reaching 3.2 percent by 2015. This upward trend in rates could spell trouble for the housing market, as higher mortgage rates would likely slow down home buying and refinancing, ultimately squeezing the banks. Other global factors are also pushin...

Bloomberg: Baby Boomers Selling Shares May Depress Stocks for Decades, Fed Paper Says

Baby Boomers Selling Shares May Depress Stocks for Decades, Fed Paper Says By Vivien Lou Chen - Aug 22, 2011 12:20 PM Aging baby boomers may hold down U.S. stock values for the next two decades as they sell their investments to finance retirement, according to researchers from the Federal Reserve Bank of San Francisco.

Bloomberg: Profits Seen Increasing Jobs as Earnings in U.S. Grow Fastest Since 1940s

Related News: Economy · Insurance · Canada · Japan · U.K. & Ireland · Stocks Profits Seen Increasing Jobs as Earnings in U.S. Grow Fastest Since 1940s By Shobhana Chandra - Jun 13, 2011 8:01 AM GMT+0900 Profits at American companies are poised to be one of the few bright spots in the U.S., helping to steady the faltering recovery.