Long-Term Bond Yields are Hitting Record Highs Worldwide

The US 30 Year Bond recently rose to 5.2%, the highest since 2007. The UK 30 Year Bond is the highest since 1998. The Japanese 30 Year Bond is the highest level ever recorded.

The primary reason is debt in the western world is at the highest levels ever recorded. Due to the government spending, inflation is increasing in 27 of the 29 largest economies in the world.

Central Banks can impact short-term interest rates but have little affect on long-term interest rates. Expect higher interest rates until the western world gets debt under control.

Stocks and real estate tend to struggle with higher interest rates. Savings, CD's, dividend paying insurance policies, index annuities, and index universal life tend to thrive with higher interest rates.

Insurance companies heavily invest in bonds. When bonds pay higher interest rates, they are more profitable. Annuities and cash value insurance become more profitable.

This is the "Golden Era of Fixed Assets". Index annuities and IUL's are paying historic returns. This is likely to continue and even increase for the foreseeable future.

The best index annuity I have seen in my 27 year career was released recently by one of the largest, A+ rated companies. This annuity product has no fee options, no cap (unlimited upside), and industry leading participation rates. There is no downside market risk. Principle is guaranteed. Once gains are locked in, the gains become the new principle.

Historical average annual returns have been 10-14% for the past 10-20 years!

Contact Ferenc at ferenc@yourpersonalbank.com or 866-268-4422 for more info.