stahleyp Posted April 28, 2017 Share Posted April 28, 2017 Almost all advisors (with the exception of Hoisington) suggest clients should mostly invested in short term bonds. Almost everyone "knows" or thinks interest rates will go up. Up until a couple years ago, people thought it would be soon. Besides the fact that they were higher than before, why does that have to mean they'll be higher now? A couple reasons why I think interest rates may stay lower much longer than people expect (have have already). rates are low across the world. Which country will want to be the first to raise? (I think Buffett alluded to this a little while ago). The second reason is affordability. If the US raises rates too much, it would have a pretty big impact on the budget. State, many already in financial binds, wouldn't be able to refinance at low rates, too. So why are people so certain that they'll be higher or normalized over the next several years? I don't have a strong opinion on interest rates but just want to better understand both sides. Link to comment Share on other sites More sharing options...
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