Jeremy Siegel, 50%, 3% discussed on Safe Money

Automatic TRANSCRIPT

88 87 now on the lightning round, and we're going to focus again this week on bonds, and let's start this week with corporate bonds provide even good, highly rated corporate bonds could be risky because there's interest rate risk. And because interest rates a little League zero bond prices move inversely with interest rates. So bond today at the high school you ever even a good corporate bond that's highly rated You're gonna lose money. And that money that you gonna lose is gonna be anywhere between 35 time to change in interest rates. And its interest rate. So what? 3% Then you could lose 50% in that blunt Junk bonds. Ricky Junk Bonds bed. The default rates are at record highs. So not only is their interest rate risk where you could lose money just when interest rates rise, but you could have that are in the vault. And when he defaults, the money's going, There is no more a count. You can't get your money back on a risky junk bond. Very bad. We wouldn't put anything it risky junk lines, really bonds, minibar, same interest rate risk. You might be earning 2 to 3% in a Munich fine. But when interest rates rise, there is interest rate risk, and you can see the value of that musical and go down anyway between 35 times to change interest rates, so if interest rates again What 3% points. You could lose up to 15% and I'm unibond Uni junk bonds. You jump on bad news. If you had Detroit Bonds or Puerto Rico bonds, you may lose everything. Stay away from Munich Junk bonds. Mutual bond funds. Mutual Boston's the worst spot investment you could get into because today more than ever before, there are many illiquid junk bonds and those Munich want funds. Now Wall Street Journal did an investigative reporting found That many of the very large mutual bond funds Have illiquid bonds in their holdings jumped up to 40% of their holdings. So when that happens And you try to redeem your funds from a very risky move Bond fund with lots of illiquid bonds. You may not be able to redeem your share. Stay away Bonds today a dangerous Jeremy Siegel of the Wharton School. He's written a piece in the Wall Street Journal, and he's called it right saying that on today a very dangerous you bilos sell high. Now's the time to sell your bonds. Sell your bond funds Get out before we take a big hit and interest rates before some of these things to fall. Get out now, while the getting is good folks before you put your hard earned dollars and any of the investments We mentioned in the lightning round. I want you to call 888755 88 87 get an appointment of Anthony Perry Get all the details read all the fine print. First year bonuses up to 15 to 20% 888755 88 87 is the number to call here's someone who called Very financial group, Honey Anthony. That's not the week for on sitting.

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