What Makes Bond Funds a Good Idea Does Not Compensate For Why They Could Be a Bad Idea

!±8± What Makes Bond Funds a Good Idea Does Not Compensate For Why They Could Be a Bad Idea

According to the Investment Company Institute, investors pulled a staggering 33.12 Billion dollars out of mutual funds in the month of July 2010. The bulk of this money went into bonds, or bond mutual funds where the returns have been quite good for the past decade. Compare the good performance from bonds over the past ten years to what investors would have witnessed in the equities markets over the same period: two crashes, years of negative returns (on domestic equities for sure) as well as current economic prospects which are just shy of being dismal.

But are bonds the right place to invest? There are several very relevant and important arguments against investing in bonds at this point in time. They are as follows:

1. Bond rates, as well as every other type of rate, are expected to climb in the coming years. A quick look at the yield curve, or the difference between the three month and thirty year bond rates tells an interest story, one that the media has not been all that keen to write about. That story is this: we are heading into a period of economic expansion. If the yield curve was able to warn us about the economic recession we just survived, as well as those recessions over the past fifty or so years, why would it lie to us now? With an economic expansion, bond rates will rise and with rising rates comes downward pricing pressure on bonds. But more importantly, periods of economic expansion favor equities, the very asset class that investors are fleeing from.

2. Bond rates have nowhere to go but up. Considering that the yield on a 12-month bond is just 0.23% and an equally painful 1.4% on a 5-year government bond, what does intuition tell us about where those rates are headed? Of course, there is some downward potential. For example, the 3-month treasury is at 0.15%, so there is a bit more room. But when one investigates rates over the past decade, one will easily find that bond rates have been on the decline and over the past several years those rates have stabilized at current lows, crossing over key technical indicators (such as moving averages). This warns of a reversal in rates, which is bad news for bond rates, regardless of what will happen with stocks.

3. Chasing popular money is a lot like chasing bubbles. The current flee into bonds is extremely similar to where investors placed their money when oil reached for 0, when gold passed the ,200/oz. threshold, when people started investing in real estate without regard for rate resets, and so on. This is the first place to suggest that the next "bubble" could be the bond bubble.

While bond represent reasonable investments -- they are recommended as part of every long-term portfolio -- making sure that your asset mix is in line and that you are not over-exposed to bonds is an activity that will have pleasing long-term results in your portfolio. While bonds have a good history at this time, the trend may soon end, making bonds a riskier prospect than the equities that have not performed over the past decade.

What Makes Bond Funds a Good Idea Does Not Compensate For Why They Could Be a Bad Idea

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Can Mutual Funds Make You Rich?

!±8± Can Mutual Funds Make You Rich?

For many, the idea of investing in "slow and steady" mutual funds makes little if no sense at all. For this special type of investor, the very same reasons why mutual funds exist are actually their arguments against considering them serious investment vehicles. And of the people who are not quite "sold" on the idea of investing in mutual funds, some are not quite sure whether these investments will help them reach their goal of striking it rich.

But mutual funds can make you rich. But not the way people think. Let's take a closer look at how the very concepts that people argue against the case for mutual funds can actually help investors get rich:

1. Diversification. Probably the biggest case people make against investing in funds is that they are far too diversified. Why invest in so many stocks when you can simply pick half a dozen winners and leave the losers alone? Makes sense in theory, however picking the winners is so easily done. In fact, many people will pick just one or two winners, stocks that come with high volatility and have seen a good run up in price. The risk, of course, is that these investments are often over bought, meaning once they correct, they will hurt the investor's portfolio. What makes more sense is holding a basket of stocks, some big winners and some more modest gainers. While it may be a slower and steadier increase, diversification is key to any long-term wealth building strategy.

2. Whole lots and leverage. Along with investing in the two or three winners that speculative investors prefer over a full, diversified portfolio, many of them actually use maximum leverage order to enhance gains. This involves margin or the use of options. With mutual funds, the investor does not rely on leverage or margin. Gains are more natural. However, investors can units rather than whole stocks. This allows for fractional ownership, providing marginally greater gains over the course of years. In addition, investors can start investing with a lot less money and can also invest on a regular basis. If buying whole stocks, investors would have to purchase whole units which becomes a costly proposition even with the cheapest discount brokers.

So what makes the most sense? A couple of highly speculative, high-flying and high-volatility shares that most people cannot purchase without the use of extensive leverage? Or a basket of securities that have been extensively analyzed for their long-term growth and profit potential, the same kind of basket that can be purchased for as little as or 0 every month without having to worry getting hit with a trading fee?

The answer is obvious. You can get rich with mutual funds because you can invest in fractional units on a regular basis (known as Dollar Cost Averaging) and you will minimize your exposure to the higher risk equities that could be the winners one day and the losers the next (known as diversification).

Can Mutual Funds Make You Rich?

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Transform your current mattress into a luxurious new sleeping surface. Introducing the Serta Gel-Memory Foam Mattress Topper. A breakthrough in memory foam technology. Our exclusive gel bead infused memory foam provides the ultimate in comfort and pressure-point relief. Gel-memory foam combines the premium custom comfort of traditional memory foam plus adds additional firmness where you need it. Never count sheep again.

• Serta 2.5-inch Twin size gel infused memory foam mattress topper with deluxe 100% egyptian cotton cover
• Infused gel beads capture and distribute heat so you won?t sleep warm. Fall asleep faster, sleep deeper, and wake up feeling refreshed and rejuvenated.
• Patented gel formulation plus premium Serta memory foam; reduced tossing and turning
• Includes removable and washable 100% egyptian cotton stretch to fit cover for breathability and softness
• Topper measures 39 inches wide by 75 inches long by 2.5 inches deep

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!±8± Affordable memory foam mattresses: Mission Frugalicious (Frugalicious The Show)

Visit our website and subscribe to our channel! TheFrugaliciousShow.com Facebook www.facebook.com Twitter: twitter.com Costco memory foam mattress nova form gels bit.ly Amazon sleep Innovations 12-inch foam memory selection amzn.to Ikea Serta memory foam mattress mattresses bit.ly Overstock Memory Foam 8-inch bits. Ly Frugalicious The show is a web TV show that you live the best life possible, while spending the least amount of money helps. Bitsy Parts and Erin budget-friendly lifestyle tipsFrugalicious the show, and stock quotes Larissa Hot Deal of the Day every day. Learning to live a life without sacrifice Frugalicious. Having a Frugalicious find you want to share? Leave a comment!

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NovaForm Pure Comfort King Mattress

!±8± NovaForm Pure Comfort King Mattress

Brand : C.O.S. | Rate : | Price :
Post Date : Sep 30, 2011 00:45:07 | Usually ships in 1-2 business days

NovaForm Pure Comfort King Mattress

The Pure Comfort mattress with NutraTemp memory foam allows you to sleep cooler while still receiving the reduced pressure relieving properties of memory foam. The overall comfort life is increased by the premium base foam layer, which provides increased support and longer lasting durability. Get a better night s sleep on a memory foam mattress with the latest technology, confident quality performance and superior value.

• Box spring not included
• Meets the requirements of 16 CFR Part 1633-Federal flammability (open flame) standards
• Flame-retardant cover conforms to strict Federal standards
• Mattress thickness: 12"
• Cover: Smooth Luxurious jacquard cover
• Top Layer of Mattres: 2.5" of NutraTemp temperature-neutral, premium-quality memory foam
• Base layer of Mattress: 9.5" of superior support foam
• New increased air flow technology memory foam
• 100% Hypoallergenic foam
• Durable and long lasting
• Memory foam molds to your body; returns to original shape after use
• Relieves pressure points and improves circulation
• Great for platform beds and slatted frames
• Memory foam proudly made in the USA
• Compressed & packaged for easy transport and delivery
• King Mattress Dimensions:
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  Weight: 145 lbs

 

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Have you paid your health insurance for your memory foam mattress

!±8± Have you paid your health insurance for your memory foam mattress

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Have you paid your health insurance for your memory foam mattress

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Full Size 12" Therapeutic Memory Foam Mattress with 5" 5LB density Viscoelastic Memory Foam. FREE SHIPPING IN 48 STATES!!!

!±8±Full Size 12" Therapeutic Memory Foam Mattress with 5" 5LB density Viscoelastic Memory Foam. FREE SHIPPING IN 48 STATES!!!

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Full Mattress Only - Box Foundation is not included. Feels like a Tempur-Pedic Swedish MattressFull Size is (54"x74") 10 YEAR WARRANTY!! Made with 5.5LB 100% Memory Foam Retails for 00.00 and up!! All items are new and shipped in original packaging. Don't be fooled into buying an "original" for no reason. Our mattress is guaranteed to feel and perform the same or your money back!!! Why are Memory Foam mattresses the most popular mattresses we sell? It uses the Visco-elastic Memory Foam Technology developed by NASA to sense your body's weight and temperature and then gently conform to your shape to minimize pressure points and reduce tossing and turning. We use only the best quality products available on the market today. This mattress is made of 3" 5.5LB Memory Foam and 7" High Resilience Polyurethane Base Foam. The best firmness retention foam in the industry. To minimize shipping fees and for ease of handling during delivery, this mattress has been vacuum packed. Rest assured this does not compromise the quality or comfort of the mattress and that the mattress will conform to its proper size within 1 - 2 hours. Instructions will be packaged with the mattress.

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Nova form mattress - How does traditional mattresses are different?

!±8± Nova form mattress - How does traditional mattresses are different?

Many people are very casual when they go to buy a new mattress, because they realize that they spend a third of their life on a mattress. In addition, sleep well at night, make sure you're rested and relaxed as you begin a new day. Unless you have a mattress with a suitable structure and hardness, probably reliving the pain and insomnia / restless sleep.

3 to 8 layers of padding can be used as padding in each mattress. Various materialsbe used to make each layer of padding. Memory foam, cashmere, latex foam, silk and wool are among the materials used by manufacturers of high quality layers of upholstery. Memory foam, in particular, as the producer of Nova favors.

Traditional innerspring mattresses in one, there are coils. These are accepted by the producers to distribute body weight evenly. Your body is said to support (from the coils) to get wherever you need it most.

Other traditionalMattresses, box springs to use as little shock absorbers. Give you a little 'when you apply the power and weight to the top of the mattress. A good box spring is intended to extend the life of a mattress.

The manufacturer of mattresses Novaform produced for many years. They maintain high quality products. Do not use inner springs for the manufacture of this mattress. The manufacturers claim that the mattress in accordance with the contours of the modeledSleeper.

The reason for the abandonment of inner springs in this mattress, depending on the manufacturer, is that the points of pressure through the inner resources that are created to push the sleeper. Instead, the mattress, he said, every inch of the body shape of the sleeper. The right consistency and hardness should combine to ensure comfort and reduce the incidence of back problems and other symptoms. The higher density memory foam will last longer and have amore bounce, and come back for 1-2 seconds.

Different varieties of this mattress is available on the market. The varieties available are:

or 123 Queen Memory Foam Mattress with DOUBLE AIR FLOW therapeutic w/53,

or Nova Form Memory Foam Mattress 123,

103 Queen or King Mattress Memory Foam W/33 treatment,

or Full Size Memory Foam Mattress 123 therapeutic,

Queen Celebrity Pillow Top or 123 memory foam bed mattress, and

Nova or shape memoryFoam mattress topper.

They are washable and come with a warranty of 10 years.

Nova form mattress - How does traditional mattresses are different?

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