Jamie Dimon Says: Don't Buy Long-Dated Bonds. These Short-Term Bond ETFs Could Be Better for Most Investors.
The CEO of one of the U.S.'s most important banks is worried about long-term interest rate risk.
Overview
In an interview with CNBC's "The Master Investor" podcast on July 20, Jamie Dimon, chief executive officer of JPMorgan Chase (NYSE: JPM), made headlines by talking about the bond market. Dimon said that he believes high levels of U.S. government debt will eventually "become a problem" by driving interest rates higher, and that he personally wouldn't buy long-term U.S. Treasury bonds.
Many investors buy bonds as part of their long-term portfolio to earn steady income and (hopefully) diversify against the risks of stocks. But long-term bonds aren't the best choice for every investor, and the past few years have been bad for long-term bond exchange-traded funds (ETFs).
Details
Let's look at a few reasons Dimon might be right to be worried about long-term Treasury bonds -- and see what bond ETFs you should consider buying instead.
Source
Originally published at www.fool.com.