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  • Inflation Jumps in August - Implications For Bonds

    Today we look at the latest economic reports and in particular, the housing market where there are some encouraging signs. Among the reports we look at today are the latest inflation figures for August, both of which surprised on the upside. Both consumer prices and wholesale prices were well above expectations last month.

    As we all know, rising inflation is bearish for most bonds, especially Treasury bonds. Interest rates on intermediate and long-term bonds have been rising since late July. While some believe this jump is only a temporary "correction," we cannot rule out the possibility this may be a new trend in interest rates. If so, that will be very bad news for millions of investors who are overloaded in bonds.

    There are some good alternatives to long-only bonds and bond mutual funds. In a new SPECIAL REPORT, I explain what some of those alternatives are and how you can get them in your portfolio before it's too late. Near the end of today's E-Letter, I give you a link to the new SPECIAL REPORT and best of all, it's free.

    But before we get to all of that, I must bring you the bad news that the United States has fallen precipitously to #18 on the "Economic Freedom of the World Report," down from #3 in 2000. You will definitely want to read this! I have summarized this alarming report for you, and we'll start today's letter with that disappointing news.

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