Financials Matter

"It's Not Just About Finance"

Danger! Warning! Run, Will Robinson, Run

For those of you old enough to remember, the subject line of this email was from the old “Lost in Space” series from the 60’s.

It’s also what you should do when you hear someone tell you to buy Government bonds.

The reason is you’re guaranteed to lose money in an “alleged” safe investment.

Government bonds are supposed to represent “security” instead of risk.

With that in mind, it makes sense to invest in them.

However, todays bond market is so distorted that investors are willing to buy bonds that have a NEGATIVE interest rate.

A classic example is the current German 2 yr. Government bond (called the “Shatz”…I’m not making this up) that’s yielding minus .75%.

Thin about this for a minute.  For every $10,000 invested in the “Shatz” you must pay them $75.00.

It also means that people are willing to lose money every year for the “security” of a Government bond.


Who needs security like that?

Here’s the sick part.

Every day, the financial lame-stream media screams about how the stock market’s gonna crash.  But they neglect to mention how the biggest bubble in the world is in the bond market.

(Most investors don’t realize that the bond market is over twice the size of the stock market.)

So, where will you run “Will Robinson” when the bond market blows up?

One thing for sure is money AWAYS moves in anticipation of an event happening.

You don’t want to be late getting out because the exits might be blocked.

We have article called: “Size Matters When You’re Running for the Exits.”

It’s in our archives.  But you must be a member to read it.

Find out more (HERE).

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