The first of two “warning shots” came when FINRA issued an announcement telling Investors that Bonds could “experience significant price drops” and to “expect the value of your bond fund to decline, perhaps significantly“. FINRA has never made any announcement like this in it’s history. Read the full announcement here. This is a major sign that anyone who owns Bonds, should find another place to park their money until further notice. The second “warning shot” hit even closer to the target when, just today, we hear rumors that UBS is going to re-classify Bonds as “aggressive” investments.
So, why would one of the biggest banks in the World want to re-classify the “safe-bet” for investors…? Because it’s not a safe bet any more. That’s why. But more importantly for UBS, a little CYA. UBS is worried about lawsuits from Investors who created “safe” or “conservative” portfolios filled with Bonds at current prices. When those investors lose their shirts all at the same time, it will make a Class-Action Lawyers’ dream come true. So, UBS is giving smart Investors a clear sign. Hey, if UBS is worried about Bond Yields going down that quickly and heavily, then I’m worried about it too, but that’s just me. Hopefully, those investors will listen and protect their portfolios from getting CRUSHED when the Bond bubble bursts… Tick-tock.
Other topics covered on today’s show:
– What to do now to avoid getting hurt by the Bond bubble bursting
– The one investment that will make you money if inflation comes and it’s not Gold
– How to create engaging conversation and better your business with new, solid relationships
– A horrible story about an 85 year old woman who was tricked by her bank, now they are trying to foreclose, but we’re going to help her save the home. Thank goodness she called me now. We would have had zero options in just a few days.
Gary John, President at Corporate Alliance of San Diego and Owner of the Air Conditioned Lounge.
Categories: Best of Radio Show, Buying Real Estate, Commercial Real Estate, Corporate Alliance, Fixed Income Investing, Government Absurdity, Mortgages, Radio Shows, Reverse Mortgage, San Diego Real Estate Market, Trading