1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Canadian Value
Canadian Value
Articles (4624) 

Jim O'Neill - We Need to Get Ready for US Bond Yields to Double

June 11, 2013 | About:
Some observations from O'Neill today:

images?q=tbn:ANd9GcQ6n7U279Wg6tq_9WurkwX

- Turkey is a critical country for the modern world as it had been a successful story of combining the best of the Western world with the Middle East. The current turmoil is distressing.

- The Turkish stock market is down 18% in a month, but O'Neill isn't sure it is a table-pounding buy because the market had risen quite significantly in the two years prior, so a correction may be reasonable. He urges caution on investing in Turkey.

- If U.S. rates start rising because of the Fed tapering countries with significant current account deficits are going to vulnerable.

- He suggests looking back on 1994 which was the last true bear market in bonds for an idea of what happens when bond yields start rising.

- We need to prepare ourselves for U.S. bond yields being at 4%, not 2%.

- We are likely at the end of a 30-year bull market in bonds and about to return to an equity culture.

- The stock markets with the most attractive valuations are the periphery countries in Europe as well as China and India.

About the author:

Canadian Value
http://valueinvestorcanada.blogspot.com/

Rating: 3.0/5 (1 vote)

Comments

Please leave your comment:


GuruFocus Mobile App


User Generated Screeners


dpostelPE DRIVEN BEST
dpostelPE DRIVEN
Doug Taylorgrowing high yield dividends
pbarker46O & G Canada
tedvailasTed6
Thomas W. Eaton, Sr.Tom - 8-26-16
rael2222Credit Services
rael2222Insurance - Specialty
DBrizanALL GURUS 1+
rael2222Health Care Plans
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK