How to Lose Half Your Money in Government Bonds

Yes, you can lose half your money in government guaranteed bonds. The iShares index ETF “TLT” of 20-year treasury bonds shown below has lost half its value in the last 3 years. Some bonds, 30-year Treasuries for example, have been impacted even worse. Long time clients are well familiar with Equitas’s position on bonds having written KnowRisk reports “Return-Free Risk” in 2012 and “The Warning Label” 2014. Did we know that treasury bonds would lose half their value? No, we just thought that a 1% yield was not worth the risk of investing. Now, we are recognizing the opportunity presented by the highest bond yields in decades.

Read More »

Permanent Inflation

Total Federal spending for fiscal 2023 stands at over $6 trillion with a projected deficit of $2 trillion by the nonpartisan Committee for a Responsible Federal Budget (CRFB). This marks a reversal from last year’s drop, increasing concerns over deficits, inflation, and spending.

Read More »

Artificial Intelligence (Written by AI)

This is the first KnowRisk Report on the topic of artificial intelligence, written completely by artificial intelligence computers. We asked the computer 3 questions: What are the pros and cons of using AI for investment research? Where will AI be in 5 years? Will AI ever surpass human intelligence?

Read More »