Municipal Bond Forum
On “A Forward Strategy for the Inverted Yield Curve” – cont’d #2
Q
So you’re saying, don’t keep your eggs in one basket? If I can get a higher yield short term with a portion of my portfolio, and swing the higher yield earned into the long terms (before they’re bought out), that would be the best, right? Thanks for your thoughts. Your article was short, precise and good for average investor like me!
A
James A. Klotz responds:
The point of the article is that short interest rates, although attractive, are not likely to remain high for any reasonable period of time. When these short rates begin to decline, the long end of the market is not likely to offer the yields available today.
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