Bonds Are Not Forever

“Public policy is to suppress interest rates and thereby transfer real wealth from savers to borrowers. Investors should respond by radically lowering their allocation to fixed income assets. If the Fed likes bonds that much, let them buy the lot”

Following the success of my first book, The Hedge Fund Mirage; The Illusion of Big Money and Why It’s Too Good To Be True, I have examined how the steady growth in debt and in financial services is likely to impact future returns. Almost every investor seeks income from their portfolio. Fixed income assets are unlikely to be the answer, as the enormous build up in debt will depress the after-inflation returns for bondholders. Bonds Are Not Forever links the debt build-up with the growth in financial services and concludes that, while bonds have been a great investment for over 30 years, their best days are behind them.

By considering history, the fallout from the credit bubble and America’s political process the reader will learn how to invest for income without using conventional fixed income since bond yields are so uncompetitive. Bonds were good for a long time, but Bonds Are Not Forever.

The manuscript is undergoing editing at John Wiley. Publication is anticipated by the end of the Summer.

What People are Saying

“Simon Lack, a former J.P. Morgan trader and money manager, advises investors to steer clear of U.S. Treasury bonds on the grounds that the government’s indulgence in the age-old practice of inflating away debt makes a negative return likely. His book also offers an insider’s account of the dramatic changes in international finance at a time when a global explosion in public and private debt was expanding the size, scope, and complexity of banking. Personal anecdotes, especially about the fast-paced trading of exotic ‘derivatives,’ make this book not only informative, but entertaining. It won’t, however, relieve anxieties about the current fragile state of the global economy.”

“This fascinating and prescient narrative of the bond market’s past, present, and future will captivate both professional and personal investors. Peppered with anecdotes from Mr. Lack’s four decades of experience in the financial markets, this book prepares financial stakeholders for an investing landscape that may look very different from what they have come to take for granted.”

“In The Hedge Fund Mirage, Simon Lack exposed the appalling mediocrity of a hedge fund industry grown fat on investors’ fees. In his latest book, he takes on the great thirty-year bond bull market, turning an insider’s eye on how we got here and the risks that lurk in portfolios of supposedly safe debt.”

Media Coverage

Latest News

August 20th, I just received my first copy straight from the warehouse. It looks great! And the bond market is co-operating by going down in time for publication.