Ian King wants investors to know that the bond market is slowly becoming a challenge for the stock market. The Fed has been raising its rates consistently, and these increases are forcing investors to look elsewhere. King has plenty of experience in the mortgage bond trading sector and has also worked with credit derivatives during his time with Citigroup. This is why people listen to him when he speaks up about an issue such as this one. The yield rates of bonds have been increasing and are currently sitting at 2.74%, and King is alerting investors to the fact that the two-year, five-year, and ten-year notes are all increasing by many points. Read more at Talk Markets.
Ian King has acknowledged the fact that stocks haven’t been facing much competition for many years, but he believes the TINA Effect, which stands for “there is no alternative,” will turn the tables. This has to do with the way that investors will hold onto their investments when there is not a better investment available. When many investors do this all at once, it can cause a rise to happen. In 2008, quantitative easing by the Fed created longer-dated bonds, which helped the banks at the time. The idea was to boost the stock market by creating wealth, but this just created an over-aggressive market. While yields were falling, bond prices were going up. Currently, ETFs and equity mutual funds are offering more than stocks, which have decreased by $72 billion in recent times.
Ian King has revealed that while all of this is true, many experts are cautioning against investing too much into bonds. Dividend stocks are being recommended in their place as a good long-term alternative to these. Experts are also advising that investors do not cash out right now, because this just means they will have less money to build their investment up over time. King has suggested that the best course an investor could take is to work closely with a trusted expert who can guide them through times that appear to be taking a turn for the worst.
Ian King not only works with hedge fund management and bonds, but he also is the cryptocurrency expert at Banyan Hill Publishing. He earned a Bachelor’s Degree in Psychology and got into the world of investing afterwards. At Investopedia, Ian King has put together a multimedia program that focuses on investing in cryptocurrency, and this has helped many hopeful investors to get a better grasp of the crypto market. In 2017, King teamed up with Banyan Hill Publishing as an Editor and Senior Analyst. Visit Banyan Hill to know more about Ian King.