How Janet Yellen Could Help Fight Inflation With 100-Year Bonds
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If Congress actually passes President Biden’s blowout spending bills, we’re in for a devastating breakout of inflation. There’s an effective way to ease the pain.
But as this episode of What’s Ahead notes with astonishment, Janet Yellen refuses to do it: Sell bonds with a duration of 50 years or 100 years with a coupon of 3%.
That yield seems generous only in today’s world of extremely low interest rates. But as inflation heats up, it will look low.
So it would make sense to lock in low long-term rates.
Bull Markets Don t Last Forever: How Should You Invest?
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This segment of What’s Ahead tackles the question of what sensible investors should do now.
Stocks keep breaking records, but bull markets don’t go on forever. Trying to time the market going all in or selling everything is a fool’s game. It never works for long.
Equities that investors should have plenty of are those that both pay dividends and have a long-term record of boosting their dividends each year. Even though such stocks won’t escaping a shellacking in a bear market, they will most likely pay you dividends and even raise them.
Bond Market Crash? Why Individual Investors Should Stay Out Of Bonds
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This episode of What’s Ahead describes why investors shouldn’t buy bonds. The great bull market in bonds that began in 1982 is over. If you have bonds in your portfolio, make sure their maturities are no longer than three years.
Although interest rates have come up a tad in recent months, they are still at levels not seen before in recorded history.
Rates will be rising as the economy recovers from the pandemic and as the Federal Reserve starts printing money in earnest to help pay for Joe Biden’s spending binge.
Californiaâs Governor Newsom Faces Recall Election: Why Investors Should Care
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Caitlyn Jennerâs announcement that sheâs going to run for governor of California has directed national attention to the upcoming recall election of incumbent governor, Gavin Newsom.
This segment of Whatâs Ahead focuses on why this race matters to investors.
Even before the pandemic, California was reeling economically from the kinds of economic and regulatory initiatives that the Biden administration is now pushing. Despite the vast riches of Silicon Valley, the Golden State has the highest poverty rate in the nation. California has pursued disastrous big government policies that have led to sky-high taxes, nosebleed housing prices, a failing school system and a state that needlessly flushes almost half of its annual rainfall into the ocean!
Bidenâs Tax Plan Will Be Devastating For Democrats And The Economic Recovery
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This episode of Whatâs Ahead points out how the tax proposals President Biden outlined in his national address will hurt, not help, the economy. If enacted, they will turn into political poison for the Democrats.
A doubling of the capital gains levy will shrink Uncle Samâs revenue, as people will be more inclined to hold on to existing assets rather than sell them and pay so much of the proceeds to the government.
Raising the corporate tax to the highest level among developed nations will mean less money for expansion, which will shrink the economy.