Bonds Are Bad

Holding long term bonds till maturity is bad, especially in this inflationary environment that our nation is now going through. Our U.S. Treasury Bonds offer very little yield, the 10 year bond now has an annual yield of 3.30% which is no return at all when you consider that inflation is at least running 8% per annual. Bill Gross thinks so too, and he just happens to be the largest single fund money manager in the world. At the helm of PIMCO who manages $1,200,000,000,000.00 dollars, this guy didn't reach the top without spotting investment dangers. And as for long bonds he is positively negative on their outlook.

For more on Bill Gross' outlook regarding our national debt (he thinks its about to get chaotic) and what will happen to interest rates going into the future(the cost of borrowed money) here is the link to his full new monthly missive.   http://www.zerohedge.com/article/bill-gross-treasury-market-collision-course-financial-repression