Monday, May 19, 2008

Why rising inflation will trigger a bond market rout

Why rising inflation will trigger a bond market rout | Financial Planning: "But in a real bond crisis that trickle would become a flood. Bond sellers would be buyers of higher yielding currencies, quasi-money assets like gold and silver as well as hard assets in the form of commodities from energy to food.

Terrible investment
The problem is that as Dr Marc Faber argues bonds could well prove to be currently the worst value as a major asset class in 30 years. They pay a miserable return in a devaluing currency and are highly vulnerable to capital value erosion through inflation."

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