FX1 | Fixed-Income1.com portfolio has a very short, maturity certain duration and strategic company placement. The portfolio selection is designed to adhere even during very tough times. With the US economy showing real erosion over time, the US politicians are doing virtually nothing to solve the real and tough issues in the Untied States. Plus with the debt greatly increasing, at some point the bond market will have a major correction.
So with all the problems, current interest rates are so artificially low that they are close to zero, and the federal reserve continues to pump large amounts of new money into the system and has been for well over 5 years. This type of action only serves to hide or mask the real issues in the short term. When interest rates start to climb, they could and will expose the many masked issues in our economy. With that in mind we are designing and building portfolios with the idea that we are going to see tough times. Thus that’s why we have taken so many extra steps in our selection process, to make sure the bonds we select have high levels of the following characteristics: cash, good balance sheet, low debt loads, and strong strategic advantage based companies to help protect against a rough future.