Bonds and Fixed Income

[gfp927z]

Hedgebunny, >> ready to crash <<



That's a real possibility considering the aging 9 year bull market, the high US debt levels (over 100% of GDP), the likelihood of a shooting war with N. Korea next year, and probable Chinese mega devaluation of the yuan soon.

I've been following Jim Rickards, author of 'Currency Wars' and 'The Death of Money', and he's completely out of stocks except for the gold mining sector. He has 10% in physical gold with the rest in cash, short/mid Treasuries, plus land and fine art. He sees a SHTF coming that will be worse than 2008, where the IMF will have to bail out the US/world with their SDR/Special Drawing Rights, which will then become the new world reserve currency.

When/if this happens it obviously won't be pretty for the stock market, and there will be a lot of inflation in the US as the US dollar is dethroned as the world's reserve in favor of the SDR. So in general bonds would also be a bad place to be, other than for some short/mid term Treasuries.

Let's hope Rickards is wrong, but at 9 years the bull market is long in the tooth with a lot of big landmines out there, so no sense trying to eek out the last 5 or 10% imo..