Bond Bubble

What is the bond bubble? Most Americans have no idea what is on the way with bonds. Many put much of their retirement in so called “safe bond funds”. The exact opposite of what they should have done. This bond bubble has been building up for a long time and when it bursts, there are going to be major losses. The 10 year Treasury was at 15.4% back in 1982. In 1962 it was as 4%, in 1972 it was at 6.7%. What did the stock market do in those 20 years as interest rates went up? In 1962 the Dow Jones was at 680, in 1972 it was at 850 and 10 years later in 1982 it was 852. The stock market had virtually no gains for 20 years! So from 1982 to 2010 interest rates (the 10 year Treasury) has gone down. This is about to reverse again as interest rates will now climb again.  The market has not done anything for the last 10 years. Do we have 10 more years of a flat stock market? Where could gold and silver go? I have predicted $2500 gold and $50 Silver by 2013. The amazing thing is that if we are still only at the early stages of years of higher interest rates like from the 1960s to early1980s, gold did not reach it’s peak until 1981. If that same trend happens again this time, we could see gold go to over $10,000 by 2020.  This would also mean that housing prices would remain low or flat for many years as with higher interest, you would need the price of the home to be lower to afford it. We will hear the word stagflation often and food and energy will cost us all much more.