Robert Kessler of Kessler Investment Advisors was on WealthTrack this last weekend defending bonds. He takes the contrarian view that the bond bull isn’t over yet. His defense:
- Nothing has really changed in recent years to force yields higher.
- Deflation remains a higher risk.
- De-leveraging continues.
- The economy is actually weaker than it was in 2012.
- Inflation is lower than it was in 2012.
Kessler says the 10 year Treasury bond should yield about 1% above the rate of inflation and that means the risks to yields at present are to the downside. See the full interview here:
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.