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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: pinhi who wrote (49199)	3/31/2002 7:45:28 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 65232

Buying Bonds as Interest Rates Rise Mar 31 8:47am ET By Jonathan Stempel siliconinvestor.com [Fed now neutral, much talk of summer tightening, energy costs rising, war footing spreads in oil lands, federal deficits widen, fed money supply growth never larger... sounds like Stempel is as biased toward bonds as brokerage houses are biased toward stocks] NEW YORK (Reuters) - Economists expect interest rates to go up as the U.S. economy recovers. So that must make this a bad time to buy bonds, whose value falls as rates rise. Nonsense, says Tom Ricketts, president of Incapital LLC, a Chicago-based company that, through its "InterNotes" program, tries to help ordinary retail investors buy individual bonds with no-commission minimum purchases of $1,000. "We don't know that it's going to be a rising interest rate environment," he said in an interview. "It's ill-advised to try to time the equity market. It is even more ill-advised to think that with the 'safe' part of your portfolio, you're going to time the bond market too." - more, but clipped