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Finance Articles
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Keeping It Interesting
By A Raymond Randall
Consumer Debt Management It was fun whilst it lasted. You applied for a couple of credit cards, had a store card on the go and even took out a hefty car loan not so long ago. The more purchases that you made on your cards the higher your monthly repayments became and now you find yourself in the position of making repayments each month with nothing left in the bank. It was easy getting yourself into debt but it`s a lot harder digging yourself out of this hole. Having lived the life of Riley for quite some time the reality has hit you hard and you now need to find an effective solution that can help you to manage your finances better in the future. Help with Consumer Debt Managementcan be found through debt solution teams. They provide structured Consumer Debt Managementadvice to tons of people and can provide you with a plan to help you to get yourself back on your financial feet. One of the schemes that the debt management firm can provide you with is a structured plan for all of your unsecured loans. They will calculate what you can afford to pay each month, negotiate with your creditors and you`ll then pay the Consumer Debt Managementfirm one fixed monthly figure from then on.
Bond traders "keep the conversation lively" . Have you noticed that long-term rates have fallen while short-term rates have risen? Low long-term rates keep the housing market active (a positive, maybe), with the implicit suggestion of a slowing economy (a drop in long-term borrowing by corporations suggests a slow down in the economy). All of this is happening as the Federal Reserve torques rates higher! An interest rate anomaly occurs when short-term rates get close to exceeding long-term rates. This is known as an "inverted yield curve". Inverted yield curves preceded the past five recessions. "Something strange has been going on in the bond market", writes E.S. Browning (Wall Street Journal, May 31, 2005). Markets get long-term trends right, usually. Low interest rates recommend positive stock returns; however, market volatility seems to defy such optimism. One day stocks are up, and the next down. Someone said, "When interest rates are low equities grow." Many stock analysts get slap-happy moments with low interest rates. Optimism does not move markets; pessimism does. Browning wisely observes "...the prevailing view in the stock market is one of celebration..." when it ought to be fear. (WSJ, May 31, 2005) Some economists do expect worsening economic conditions. "Over the past 35 years, the skeptics say, Fed rate increases have tended to end with trouble." (WSJ, May 31, 2005) Most recently, the bubble gum stock market popped during 2000 left stocks looking like pink bubble gum on a child`s cheeks. No simple resolution keeps investors from the dangers of an inverted yield curve. Every analyst, economist, and pundit has an opinion. What matters is the reaction of the bond market, and the current short and long-term yields are "keeping it interesting". My point? There is no way to predict every asset class move (up or down). Broad diversification within the bond universe provides aggregate benefit to your portfolio. This does not mean owning every conceivable bond; it does mean integrating bond management consistent to reach your goals within the context of your risk tolerance. * These are the major bond (fixed income)asset classes U.S. Government * International Fixed Income * Municipals (tax efficient accounts) * High Yield * Emerging Market Debt "When a thing ceases to be a subject of controversy, it ceases to be a subject of interest." - William Hazlitt, English essayist (1778 - 1830) 
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