The article below is an excellent depiction of the disconnect in investors minds between the perceived “safety” of bonds, and the actual risks defined as the permanent losses of capital should interest rates rise. Treasury bonds are absolutely terrible investments at these prices and so are many of the corporate and municipal bonds that investors have bid up to ridiculous level. The fact that so many people are wary of the stock market is one of the most bullish indicators, although we at TTCM see a bifurcated market with various pockets of opportunity, as opposed to any severe undervaluation of the market as a whole.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.