I’ve got a lot of respect for the bond market. After all, it’s much bigger than the stock market with a lot more money riding on making the right call on the markets. It is truly the Big Dog while we in the equity markets are the tail. Recently, bond prices have shot up while interest rates have plummeted. What does that mean for the stock market?

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Do you invest your own portfolio but want to focus on other passions? Or want to make sure that your family is in good hands if you become unavailable to manage your household finances?

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There was a time when one of the rules of asset allocation was to always keep a little cash in your portfolio. Cash was the safest bet you could make. It became the place where we retreated when the markets were in free fall. Today, however, cash as an asset class, earns almost nothing. As a result, many individual investors are using that cash to trade currencies and in the process transform the world’s safest investment into something a lot more speculative. [Read more →]

 



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