Ian King: The Rise of the Bond Market
Ian King is one of the newest members of Banyan Hill Publishing Company. He was brought on board due to his unique combination of experience in both the traditional financial markets and in the new and exciting class of assets known as cryptocurrencies. He is one of the leading contributors on the Internet to investment strategies related to cryptocurrency trading. He is currently the lead editor for Banyan Hill Publishing Company’s newsletter on cryptocurrencies that is known as Crypto Profit Trader. Follow Ian on Twitter.
Ian King has recently posted his viewpoints on the growing popularity of the bond market and how it could potentially be influencing the stock market. As of right now according to Ian Kingthe bond market is creating a challenge for the stock market. Over the last ten years, the stock market has almost invariably been the leader in terms of performance between the two. Over the last ten years, the value of the American stock market has increased by over 25%.
He believes that there will be an increase in the interest rates by the Federal Reserve Bank by the end of June which could have significant effects in the stock market. Amid speculation that such a rate hike may occur more and more investors are beginning to flock to the bond market in order to protect against potential negative effects on their investment portfolios.
Ian King has also worked as a mortgage bond trader, so he has considerable experience in this particular industry. Over the past year yields on bonds have increased by 118 points for two-year notes, 92 points for five-year notes and 62 points for ten year notes.
There are a lot of investors who do not see any alternative to investing other than the traditional stock market. This commonly held viewpoint can lead to strange occurrences in the stock market. In 2008 after several rounds of quantitative easing the dates for bonds increased which led to an expansion of the money base. When this occurred, the yields for bonds dropped drastically. This was done as part of a purposeful move to encourage investors to take on more risk and move away from bonds. As of now, the yield for bonds has increased above the dividend yield for the S&P 500 which marks a major turning point in the performance between the bond markets and stock markets relative to each other. This could market an optimal time to begin entering the bond market.
Learn more: https://www.crunchbase.com/person/ian-king-4924