http://www.investmentfoundation.org/bonds-fixed-income/tax-exempt-bonds/ A comprehensive guide to investing for new and experienced investors alike. Sun, 21 Feb 2010 20:35:31 +0000 http://wordpress.org/?v=2.9.1 hourly 1 http://www.investmentfoundation.org/bonds-fixed-income/tax-exempt-bonds/comment-page-1/#comment-4 florida claims adjuster Sun, 21 Feb 2010 20:35:31 +0000 http://www.investmentfoundation.org/?p=102#comment-4 I really don't understand what people mean when they talk about a "bubble" in the bond market. Bonds aren't tulip bulbs. Why not just say that interest rates are pretty low right now, and it seems that interest rates are more likely to rise than to fall in the near to intermediate term? "Just check the duration. That's a technical term that's the best measure of a bond's inflation and interest-rate risk." I really don’t understand what people mean when they talk about a “bubble” in the bond market. Bonds aren’t tulip bulbs. Why not just say that interest rates are pretty low right now, and it seems that interest rates are more likely to rise than to fall in the near to intermediate term? “Just check the duration. That’s a technical term that’s the best measure of a bond’s inflation and interest-rate risk.”

]]> http://www.investmentfoundation.org/bonds-fixed-income/tax-exempt-bonds/comment-page-1/#comment-3 avmed Sun, 21 Feb 2010 19:37:57 +0000 http://www.investmentfoundation.org/?p=102#comment-3 Seems like the term "Bubble" in relation to any asset class is this years equivalent to 2007's term "a perfect storm". It's a great term for cocktail party conversation but it isn't particularly useful in assessing an investment strategy. A bubble is only recognized in hindsight. People were predicting a real estate bubble as early as 2000. It wasn't until 2008 that the prediction came true. Every asset class with returns that exceed the long term averages is a potential bubble. Seems like the term “Bubble” in relation to any asset class is this years equivalent to 2007’s term “a perfect storm”. It’s a great term for cocktail party conversation but it isn’t particularly useful in assessing an investment strategy. A bubble is only recognized in hindsight. People were predicting a real estate bubble as early as 2000. It wasn’t until 2008 that the prediction came true. Every asset class with returns that exceed the long term averages is a potential bubble.

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