As if Americans don’t have enough to worry about with the impending fiscal cliff; now there is a greater long-term danger laying in wait in dark financial corners for 2013. Its called the “Great Rotation”!
A ‘great rotation’ is a cyclic general swing by investors away from buying bonds into buying stocks. Sounds innocent enough, but this time will spell big trouble for long-term U.S. federal government debt.
There are numerous reasons investors feel the time is ripe for another great rotation.
The Dynamics of a Great Rotation
According to experts the reasoning behind a rotation are quite simple. Stocks become risky for one reason or another, lose money and so skittish investors head for safer investments to prevent losses from volitile or declining stock…
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