Not exact matches
The Dow and S&P indexes suffered some of their worst losses of the year last week, and a
shocking price move in the
bond market sent the benchmark 10 - year Treasury yield below 2 percent, the lowest level in
over a year.
While I prefer stocks
over bonds heading into 2016, investors who are overweight equities are vulnerable to any unexpected political or growth
shock, and should consider the right hedge.
Bond investors have had a succession of
shocks over the past decade in the course of discovering that there is no magic attached to any given coupon level — at 6 percent, or 8 percept, or 10 percent,
bonds can still collapse in price.
Continued bad news from Europe could
shock the system a bit in the near future, but
over the longer term (1 - 3 years),
bond prices will fall and yields will start increasing.
There was the octopus mother who brooded
over her eggs for 4.5 years without eating, the pair of gay penguins in Madrid who adopted an abandoned egg and animal
bonds that have
shocked the world.