Bond Prices Will Go Up - Think of Interest Rate Hike

Due to strong employment growth and fall in unemployment to 7.6%, the market thinks that there will be hike in Interest Rate. So the bond prices started to move up thinking that Federal Reserve Management is planning to increase the interest rate. United States Dollar[$] too will be seeing hike in the money market. The 10 year Bond increased to 2.7%, but it's only the temporary movement. Don't invest in Bonds. First, the market shows the Bond movement, then if there's no hike in Interest Rate the Bond Market will crash and Stock Market starts moving up.

More money must be pump primed in the market, but the Federal Budget has shown USD$ 85 Billion cut in expenditure. Slow in Bond Buying in the short term will increase the Interest Rate in the long term. But in the future expectation will be high, if Inflation crops up. We expect Short Term Bond Rate to increase by 2015. This month the market is expecting the Unemployment rate to come down, but it will be difficult as curb in expenditure will not create productivity and market expansion respectively.

Emerging Market Management is suffering due to high leverage in Stock Market, Inflation and more. International Monetary Fund Management Chief C. Lagarde also expected trim growth from the emerging market. The expectation is to be below 3.5% in this quarter compared with January forecast. Stock Market and Dollar will reach to the top and stay invested in cream companies. But all the investors please invest in United States Dollar[$], as it will reach the roof faster. When United States Dollar[$] is increasing automatically it will affect all the  Currencies of the world, commodities like Gold, Silver, Platinum, etc will be affected. This will create all the other market to crash.

Invest in United States Dollar[$], then move to the Dow Jones Stocks and when the market turns back invest in United States Bonds, when we expect the increase in Interest Rate.

Keyword:  Management

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