svosavvy

Portugal and Greece Downgrades Offer Silver Lining for Yield

good article and good points. Right now I can barely stand the idea of bonds, there is just no yield, so I stay horrifically out of balance. I am afraid to pull the trigger on these historically low yields as am afraid I will be stuck with them if the par sinks in a potentially high rate environment which may be on our horizon. I bought some TIPS in the spring, but, that is about it. Almost bought some 10yr GE program notes for 5.5 yield. So yeah I am artificially overweight stocks and cash because nothing I see from the fixed market piques my interest. I also feel that investment in junk debt while giving higher yield also would suffer from the sinking par blues if rates take off in a couple years. I think the fed walking away from the treasury markets will allow bidders to take up the yield in the future.