Ian King has been working in the financial sector for more than twenty years and has focused in on cryptocurrency investing in the last years. He is an author who is able to explain what he knows about investing very well, and he decided to team up with Banyan Hill Publishing in order to reach more people. In a recent article he wrote, he breaks down how bonds are becoming a challenge to the stock market. He pointed out that the stock market has been the strongest performer for investing over the last years but that the Fed has been increasing the the amount of returns people receive through bonds. This is causing more investors to look into bonds, which are becoming a safer and more sure investment. Read more at Daily Forex Report about Ian King.
Ian King has worked with Citigroup in the past where he focused on credit derivatives and also served a well-known hedge fund as its head trader. He has been educating investors about the fact that yield rates have been increasing over the last year for bonds and that the U.S. two-year note is sitting at a much higher rate now than it was a year ago. The five-year and 10-year notes have also shown an increase while the yield for a 30-year bond is growing at a much slower pace. According to Ian King the TINA Effect, which is also known as there is no alternative, has kept people investing in the things they know most about and that are safe. This is part of the reason why investors have not given bonds a serious look.
Ian King wants to refer people back to 2008 when the Fed organized multiple rounds of quantitative easing that ended up producing longer-dated bonds. The move was made to offer banks relief as they required liquidity and to force investors to turn away from bonds and sink their money into higher risk investments. The hope was that the stock market would be brought back to life, and this move was also made in the European and Japanese markets. This actually caused bond prices to increase while the yields were tumbling at the same time. King does want people to know that they might want to consider not shifting all of their investment into bonds even though the stock market is not looking good. Other possibilities to consider are dividend paying stocks, which can fill in as a good investment in the meantime.