Tags: Hogue | Bonds | Safety | Investment

Investing Expert Hogue: 'Bonds Are Sexy, They're the Safety Investment'

(Dollar Photo Club)

By    |   Friday, 14 April 2017 07:31 AM EDT

Investing expert and author Joseph Hogue told Newsmax TV that investors of all ages should dive into the world of bonds.

“Bonds are sexy. They're the safety investment. They're the income investment,” he told this week’s “The Income Generation Show.”

However, the author of “Step by Step Bond Investing: A Beginner's Guide to the Best Investments and Safety in the Bond Market” realizes that most of the general public are wary, confused or just uninterested when it comes to bonds.

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“The average investor is very underinvested in bonds. All you hear about on TV and on the internet is stock investing and that, obviously we've seen over the last two decades, leaves investors at risk, leaves their portfolios at risk and leaves their retirement at risk to a 50 percent sell off,” Hogue said.

“Right now, there's a huge misconception about the outlook for bonds. We've had a 30-plus year bond bull market where it's a come-down from double digits in the 80s to 2.5 percent on the 10-year U.S. Treasury. People are looking out into the future and predicting that rates have to go back up to those points, which it would be bad for bonds and it's just not the case,” he said.

"Global demographics, the aging population — not just in the United States but across the world — and proactivity is going to be a natural limiter on inflation and rates," he said.

"The oil boom in the United States that's given us that oil independence is keeping a lid on both prices and then the possibility that Washington wants to see a more lower rate," he said. "We've got quite a few Federal Reserve members including Janet Yellen who are coming up for re-election or changing and the pro-business government in Washington might just want to see lower rates for longer," he predicted.

"The new norm is clearly lower. The U.S. 10-year is 2.5 now. I'd say it's 3.5, maybe 4 at the most over the next 10 years. You've got several debt changes in the business cycle over that period that are going to require the Fed to lower interest rates and then you just have those natural limitations on inflation and on the economic growth that are going to act to hold inflation or our interest rates down," he said.

“Bonds should be a very good investment over the next 10 and 20 years,” he said.

“For investors in the higher tax brackets, 25-28 percent or higher, there's also opportunities in those municipal bonds. Those are federal income tax free and local and state tax free as well if you live within those jurisdictions," he said.

"Of course, as always you want to hold those municipal bonds, those tax exempt bonds within your taxable accounts and your taxable bonds, your corporate bonds and other bonds in retirement accounts to get the best of both tax advantages.”

"The Income Generation" airs on Newsmax TV every Sunday at 10 am ET.

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Investing expert and author Joseph Hogue told Newsmax TV that investors of all ages should dive into the world of bonds."Bonds are sexy. They're the safety investment. They're the income...
Hogue, Bonds, Safety, Investment
Friday, 14 April 2017 07:31 AM
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