Tuesday, June 18, 2013
Self-Fulfilling Bond Market
A sell-off in fixed-income securities began in May, on fears that the Federal Reserve might start tapering off its purchases of Treasury bonds and mortgage-backed securities earlier than expected. And even though these fears have not been realized, the market dropped because of the actions of the fearful, who sold their bonds.....just another instance of the self-fulfilling prophecy.
Labels:
economics,
personal finance