Without question the most important number in all of the financial markets is the 10 year yield (interest rates). This rate is currently flirting with its September highs of 2.97% . . . right now the 10 year is 2.88%.
So why is this important to an investor? It’s very simple, as interest rates go up, which they are (and which they will continue), fixed income products will go down. These fixed income products, otherwise known as bonds, will be hammered! There is a hole in the fixed income bubble . . . . it’s not a matter of if but when it goes “pop!”.
If the individual managing your money (either a professional or yourself) hasn’t addressed this fixed income issue – now’s the time do it!
A few other things to note on the subject . . .
- BlackRock has a great article on dividend investing vs. fixed income. It’s a must read for anyone, just click here to access it.
- There are currently 23 stocks in the S&P 100 that have yields exceeding that of the 10 year. Click here to see the list. S&P 100 Current Yield