Interest Rates Artificially Low

Interest rates are artificially held down by the Fed's policies and by oldsters auto-investing in low return bonds and CDs. There are a lot of retirees right now, and their money is doing diddly-squat in bond funds and CDs, and they are scared to move into stocks because they haven't the time remaining to recover from any downturn.

So, the right investment right now, for those with a ten-to-twenty year investment horizon, remains stocks, particularly seeing as how a good value stock fund returns just as much, if not more than, a typical short-term or intermediate-term bond fund.

Interest rates have nowhere to go but up. Ironically, bonds now seem the "high-risk" investment, due to the threat of inflation and rising interest rates. I'll talk to long-term bonds when they bust the five per cent ceiling, but not before.