Nobody can complain about the turbocharged performance of our zero coupon Treasury bonds so far this year.
Bonds can play a lifesaver role in a well-balanced portfolio.
But there s more. Not only have our Treasury zeros earned us a tidy sum this year, but I m confident they re about to rack up further impressive gains for us in the weeks and months ahead. Yields for long-dated Treasury paper are on their way down. By an iron law, that means T-bond prices are headed higher perhaps much higher in 2001. For the next two years, at least, the U.S. government will be inclined to spend parsimoniously, while the likelihood of major tax cuts is slim to none.