Market Watch with Tom Waitt

February_15th_2012.mp3 Out of the Frying Pan, Into the Fire    Interest Rates are historically low but have been lower. Many investors could jump out the frying pan and into the fire. 30 Year US T-Bond Yield (Click For Larger Picture) In early 2009 after losing 57% in stocks many investors ran into 30 year U.S treasuries only to lose 25% in late 2009. Out of the frying pan and into the fire. Historically through thousands of years it has been found the normal rate of interest is 7%. If we move to that level U.S. 30 year Treasuries which currently yield 3.07% will lose 50% of their principal value. In 1981 some will remember the Canadian prime rate reached 23% and reached 2.25% in 2009. Many conservative investors could find their savings tied up in bond funds in the wrong place at the wrong time. The U.S. Federal reserve has pledged to keep rates low for the next 2 years; however investors and borrowers should be aware that rising rates could have catastrophic results. There are m