Tuesday, July 10, 2012

Picture of the day courtesy of Switzerland!

Update July 12, 2012: The Swiss 5-year maturity sovereign bond has now gone to a negative yield! Investors will to pay for safety of principal for 60 months? A nod is a good a wink to a blind man in terms of what the bond markets are telling us about the direction of the global economies!

It's not the Alps but a chart of the Swiss government bond yield curve!

Many investors, due to the relative strength in stock market indices, might not realize just how dicey things really are out there!

Would you invest in a bond for four years at a negative yield to maturity?

Said another way, would you invest to knowingly lose money on a trade simply for the benefit of perceived safety of principal?

If you want to invest in Swiss government bonds then that is exactly what you will have to do out to four year maturities and your not earning very much at five!

Swiss government bond yield curve

Picture source

Emergency Preparedness!
Great Wine, Great Food and plenty of Fresh Water delivered to your home!

WSJWine Wine of the Month12 bottles of world-class wine for only $69.99? Learn more about WSJwines here!

Gourmet Emergency Meals at the BEST Price - WiseFoodStorage.com

Buy Two, Get Two FREE 5-Gallon Bottles at HinckleySprings.com. Sign Up for Bottled Water Delivery Today!

No comments :

Post a Comment