A bubble means that the price of an asset—and in the most recent case, that of housing—is significantly higher than its fundamental value.
Watch out because it seems like ever since the March 2009 stock market lows (which may be re-tested someday, who knows?), investors have created another bubble - Treasury Bonds.
Yes, the safety of bonds may have been true (especially over the past 10+ years) but may not be so going forward. The interest rates on 10-year bonds have increased 1% in this year alone and, based on the duration of holdings you may own of 4-5 years, that means that a 1% change in interest rates results in a 4-5% change in the opposite direction of your bond values.
Past performance is no guarantee of future returns. Be diversified.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.