Naz News, Gappers and FLE's

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OT -

Ok all you folks out there that know a whole lot more than I do about these matters...could you give me your thoughts on the following please?

Background is my wife and her sister went to see a financial consult about possibly investing some of their mom's money. Mom is now in an assisted living facility (almost all the cost is covered by her pension and SS) and has a fair amount of money currently earning a whopping 0.10% interest at Bank of America...

The financial folks are pitching this...which I'm thinking falls into the category of "it sounds too good to be true...RUN!"

Dear xxxx,

As politicians continue to wrangle over increasing the debt limit ceiling, cutting spending and raising taxes, Americans are earning record low rates of return on their "safe" money.

However, there are alternatives. If you could potentially earn double what the overall bond market is paying, and do so with little to no extra risk, is that something that would interest you?


Here is How it Works

We've taken the principles behind our Equity Rotation Strategy and applied them to the bond market, using five domestic bond categories or asset classes (see below). We call this our Bond Rotation Strategy. Here are the corresponding ETFs and how they fared compared to an equal-weighted portfolio and the Bond Rotation Strategy, looking back to 2007:



ETF Annualized Return since 2007

Corporate Bonds(LQD) ---------- 6.3%

High-Yield Bonds(HYG) --------- 5.5%

7-10 Year U.S. Treasury(IEF) -- 7.6%

4-5 Year U.S. TIPS (TIP) ------ 7.3%

Aggregate Bond Index (AGG) ---- 5.9%



Portfolio Return (equal weight): 6.8%



Bond Rotation Strategy: 11.9%