~!!~Financial pundits* banter about the future direction of interest rates has droned on for years// All of this chatter has caused a great deal of angst amongst investors, many of whom are either saving for or spending their way through retirement and desperately need reliable sources of investment income// Meanwhile, many asset managers have mobilized to capitalize on investors* fears, launching an array of new products designed to juice yields, mitigate the effects of rising rates, or both// It*s a recipe for bad investor behavior//©
~!!~The facts facing fixed~income investors today are harsh// Rather than ignore them or try to defy them by investing in some freshly minted cure~all, investors should stand and face them// We are in the twilight of a decades~old secular bull market in bonds// As of Sept// 28, the yield on the 10~year U//S// Treasury stood near 2//1%// Interest rates are historically low// This is bad news for savers//