Look, Your Survival Guy likes what he’s hearing from new Federal Reserve Chair Kevin Warsh. He’s talking tough about inflation and isn’t pacifying Wall Street with baby talk about where rates might be headed. Good.
When I’m asked, “What’s going on in the bond market?” I don’t think twice about my response: “I like it. It’s about time we get some reality about what bond investors deserve.” They deserve to be paid for risking their money and lending it to creditors, whether it be the Treasury or Walmart. Zero-percent rates were a joke.
Your Survival Guy always thinks about margin of safety first and return on assets second. Naysayers get all up in arms about bonds because they fear inflation. They point to historical returns showing how stocks have beaten bonds over the long term. True. But when you’re retired, you don’t always have the luxury of time to see it through.
Action Line: Instead of worrying about what might happen tomorrow, take a look at what’s being offered today. When you want to talk about bonds in your portfolio, email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter.
