Bond Market Impact:The Implications of Rising Rates

The recent bond sell-off and concomittant rise in interest rates present both challenges and opportunities.
I think we're gonna see a slowing in housing,said Bliss Morris,CEO of First Financial Network.Rising rates could certainly affect newer borrowers.Those still involved in renting could have some trouble buying a home.
California is doing better,the sand states of Arizona,Florida and Nevada,but secondary and tertiary markets could be in trouble.Our community banks are suffering from regulations and have not totally sold off their non-performing assests.
The next opportunities could be in the Euro-zone,with its many foreclosed properties.I don't think they've totally stabilised.They face some challenges with cultural and linguistic differences.
We do think the Treasury market offers value here,said Mark Kiesel,managing director and portfolio manager at PIMCO.We see a much weaker economy,and so we see value.We just don't see the economy generating jobs growth.There's a lot of consumer debt and unemployment is structurally high.
We're going through an unwinding of risk,creating volatility,but over time,the Fed will take another point of view and rates will go back down,Mr.Kiesel projected.
Mark Kiesel was Morningstar Associate's 2012 Fixed Income Manager of the Year.

Recovery Today:A Trust Company Assessment

The unemployment rate went down slightly in April,but it doesn't include part-timers and the frustrated who have dropped out of the jobs search,points out Komal Sri-Kumar,Chief Global Strategist at TCW.The male participation rate was the lowest since 1948.The pain should be measured by the participation rate.Regardless of whether the job market is normally a lagging indicator,in this recovery it has become a leading indicator.The stock market cannot recover without jobs. The question is,do you want to right the market for a short period of time,or do you want to support it for 3-5 years with jobs?That is at the top of my list.In the short term,I look for U.S. Treasury yields to go down if there is more trouble in Europe or the U.S.In the first half of 2013,you will see more meaningful measures on jobs after the election,Mr.Sri-Kumar projected. TCW,the Trust Company of the West,was founded in Los Angeles in 1971.It serves institutional and high net worth individuals with a broad array of U.S. equity,U.S. fixed income,alternative and international strategies in accordance with its core values of fundamental research,remaining true to its investment styles and superior customer service.

Believing In The Bull

Michael Yoshikami of YCMNET Advisors believes in the current bull market.He thinks there's still money to move into it.There's some risk in it,but he doesn't think you want to sit this one out.Sentiment is gonna get the individual investor in.Market sentiment is still pretty negative,but the news is not as bad as people think,and that's gonna drive the market.
Mr.Yoshikami thinks unemployment is the biggest risk.If the numbers stay at 9-10% and the stimulus unwinds out of the system,that's gonna hurt.For now,all the negativity is starting to go away.The retail investor is starting to feel panic at having waited so long to get back in.You're gonna continue to see confirmation of the uptrend.
He really doesn't think the Greek debt problem is resolved.He thinks they're just pushing the ball forward.There's not gonna be a default,but,long term,it kicks the can down the road,in Michael Yoshikami's opinion.