Saturday, January 2, 2010

Deighan: Get Out of Bonds Before Meltdown Hits

he surge in bond prices this year represents a bubble that will soon burst, says Dan Deighan, founder of Deighan Financial Advisors.

"My biggest fear is the bond market,” he told CNBC.

“There is going to be a meltdown. It's time to get out of bonds."

The Barclays Capital corporate bond index has gained 18.55 percent this year.

But the tepid demand for recent Treasury auctions shows investors are tiring of bonds, Deighan says.

"I think it's clear with what's been happening in December that it's time to (exit bonds). The yield curve is steepening." (more)

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