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<p>[QUOTE=&quot;yakpoo, post: 1225551, member: 18157&quot;]I agree that &quot;rising interest rates&quot; is a low probability given the current administration and&nbsp; where we are in the election cycle. However, if both the Dems and Repubs&nbsp; don&#039;t completely marginalize the Tea Party movement, there&#039;s a chance&nbsp; the economy may finally get back on track. After all, you can only&nbsp; marginalize &quot;Common Sense&quot; for so long.</p><p><br /></p><p>As for bonds, I don&#039;t see a lotta people clamoring to buy 1% CDs at my bank.&nbsp; Now if you offer them 3%-4%, things may be a bit different. As long as&nbsp; the FED continues a policy of Quantitative Easing (aka...taxation&nbsp; without representation), interest rates will remain low and the&nbsp; debasement of the dollar will continue to push PM prices higher.</p><p><br /></p><p>It&#039;s&nbsp; more the fear of rising interest rates rather than the actual fact that&nbsp; keeps some bond investors on the sidelines (who wants to be first in&nbsp; line to catch the inevitable &quot;falling knife&quot;). However, once the knife&nbsp; hits the floor, investors will fall over themselves to pick&nbsp; it up...that&#039;s a fact. Then we&#039;ll have investors funding the bond market&nbsp; and not the US taxpayer.</p><p><br /></p><p>Additionally, rising interest rates&nbsp; don&#039;t deter most bond investors. Most bond investors are in the market&nbsp; for the long haul and employ strategies that are effective in any&nbsp; interest rate environment. Some bond instrument are little affected by&nbsp; interest rate moves such as zero coupon bonds. After all, your principle&nbsp; is always returned if you hold a bond to maturity.[/QUOTE]</p><p><br /></p>

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