Buying Stocks Now May Be Less Risky Than You Think
Today, the yield on the 30-year Treasury bond is 3.2 percent. The yield on the 10-year Treasury note is 2.05 percent, less than half its 20-year average of 4.7 percent. It could be years before rates even return to that average level.
Of course, interest rates could jump on fears of higher inflation. But inflation has been 1.6 percent the past year, below the Federal Reserve's 2 percent target. What's more, the Fed has promised to keep the benchmark rate it controls near zero until unemployment falls to 6.5 percent. Unemployment today is 7.7 percent.
You can reach Bernard Condon on Twitter at http://twitter.com/BernardFCondon.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts