Inside the years leading up to 2013 and 2014… most investors bought into the concept that the best mutual funds, stock funds vs. bond cash, were bond funds. These were viewed as the best mutual funds because they had constantly performed well with less risk. The question now is: will they continue to outshine within the permanent as the best investment in 2013, 2014, and beyond? http://usabonds.us/
Only for the record, connection funds have actually perform better over the past 3 decades; and over the past dozen years they have plainly been the best mutual funds, and possibly the very best investment for the regular investor. Once investing for 2013, 2014 and beyond the stock funds or bond cash debate MUST BE on your mind. After all, these are traditionally the two best investment options for average investors who desire expansion and income, and are where most investors put their money.
Strange as it can seem, between early 2009 and mid 2012 the stock market doubled in value while investors were dumping equity or stock funds (that invest in and hold equities, stocks) and buying bond money (that hold fixed-income permanent debt securities, bonds). In other words, they were selling the best shared funds (performance-wise) and buying what they had become preferred with: shares of professionally managed portfolios of long-term fixed income personal debt securities called bond money.
It’s time to get a handle on the risk factor vs. revenue potential of such two investment options. Long-term debt investments, even U. S. Treasuries, are not safe opportunities today. They fluctuate in price and trade on view market just like equities do. When interest levels fall the fixed income they pay becomes more attractive to investors, who bid up the price of these securities. Fascination rates have basically dropped for 3 decades and have reached extremely lower levels. With interest levels dropping from double digits to record low levels over the years, bond money vs. stock funds have been the best common funds. They have paid higher dividends from the interest they earn AND have gone up in cost, value.
Since the beginning of the 12 months 2000, stock funds versus bond funds have paid lower dividends, AND have experienced heavy losses in TWO severe bear (down) markets. Average investors have lost confidence in equities, and now many consider the stock market too risky. In deciding which are the best common funds and your best investment for 2013 and 2014 keep this in mind: both have significant risk going forward.
About the other hand, merely one of these investment options provides the potential for high returns, even though the other has limited prospects for getting significantly in value – plus plenty of drawback risk. In the event the interest rate trend turns around and rates rise significantly, set income debt securities WILL CERTAINLY be losers and CAN be BIG LOSERS if interest levels rise big time. They can’t be big winners if rates always fall… because interest levels are already ridiculously LOW and won’t be able to fall much further. Equities or the stock market is a much more difficult call, but generally speaking when money leaves your personal debt securities market some of it flows to equities which tends to support stock prices. That’s the good thing about stock funds as opposed to. bond funds as the best mutual funds heading forward. They have benefit potential, while bond finance returns are limited.
Fascination rates in this poor economy of ours will tell the story. Each of our Federal Reserve made it clear that they AIM to keep rates low until the economy and unemployment rate improve. What if the independent ranking agencies (Standard & Poor’s, Moody’s, and Fitch) lower their credit ranking for UNITED STATES debt securities again and continue to warn buyers? What if China and Japan (who both own over $1 trillion of your debt securities) announce they own lost faith in our economic climate, and start selling our debt in the open market? Curiosity rates would soar, mailing bond prices and cash into a tailspin. Credit score one point for stock funds versus bond cash as the best cash for 2013, 2014.