That’s the question Steve Blumenthal, CEO Of CMG Capital Management Group, ponders in his latest Forbes article Why Bonds Are A Buy And Everybody Had It Wrong.
Not a single Wall Street analyst polled in December 2013, predicted rates lower than 2.90% by the end of 2014. Goldman Sachs’ estimate was for a 3.25% yield by year-end. Then, the yield was 2.99%. It’s at 2.40% today.
If America’s top economists have been so wrong (so far) about interest rates, what chance does the average investor have? Where can we look, if not to economists, for signals that will guide investment decisions in this dicey interest rate environment?