Alan Greenspan, Ben Bernanke, and Warren Buffet have all cautioned against bonds recently and deemed them risky investments. So what makes the risk level so high?

1. Mullooly Asset Management Podcast
May 15, 2013
Mullooly Asset Management May 2013

2. A General Consensus
Greenspan, Bernanke, and now Buffet:
- "If you own bonds, you could really get hurt."
Mullooly Asset Management May 2013

3. Things to Keep in Mind
For 30 years interest rates went in one
direction...down
Average rate for long term bonds = just over 6%
Long term treasury bond in 2013 yields just over 3%
Mullooly Asset Management May 2013

4. Bonds Stocks
Safer for last 30 years
Have now become risky
Risky for last 30 years
Have now become safer
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5. Bond Yields and Bond Values
Have an inverse relationship
Translation: Bond yields go up
Bond immediately drops in value
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6. You Will Be OK With Bonds If…
You did not pay a big premium for your bonds
You plan on holding the bonds to maturity
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7. None of the securities mentioned in this (or any)
podcast or video represent past specific
recommendations of Mullooly Asset Management.
This video is NOT a recommendation to buy or sell any
of the securities mentioned here.
If you’re relying on a podcast for investment advice, you
are likely making a huge mistake.
We strongly urge our listeners to consult with their
investment advisor before they make a decision to buy
or sell any investment.
Mullooly Asset Management May 2013

8. Mullooly Asset Management, LLC
support (at) mullooly (dot) net
732-223-9000
www.mullooly.net
Mullooly Asset Management May 2013