Gyroscopic Investing

From a page I have from the March 3, 1985 Sunday New York Times I see the following two ads:

1)

"Is your IRA Earning

15.03% effective yield / 14.08% current yield

Bull & Bear High Yield Fund

2)

New York Residents

Insured / AAA Rated / Triple Tax-Free

9.1% Tax Free

New York Insured Municipals Income Trust

Wow. Just wow.

Smith1776 wrote: ↑Tue Jan 18, 2022 7:44 pm
Wow. Just wow.

That is after they'd come down considerably after the much higher rates of the early 80s.

yankees60 wrote: ↑Tue Jan 18, 2022 8:45 pm

Smith1776 wrote: ↑Tue Jan 18, 2022 7:44 pm Wow. Just wow.

That is after they'd come down considerably after the much higher rates of the early 80s.

With our current environment of low rates and high inflation I do wonder how the next 10 years in the markets are going to play out.

It doesn't seem to me that the U.S. Government today has the same degree of fiscal headroom it did back then to raise rates on its debt.

Smith1776 wrote: ↑Tue Jan 18, 2022 7:44 pm Wow. Just wow.

https://www.youtube.com/watch?v=93q5_8olpPs

From a December 1984 "Small Business Report":

LOCK UP HIGH RATES WITH BONDS

Brightening prospects for lower interest rates for the future make investments in bonds a good way to lock in current yields that average about 13% on AAA corporates, 12% on government issues, and 10% on tax-free municipals.

From the Sunday November 24, 1985 New York Times ... In a box entitle: "CONSUMER RATES"

Passbook Savings (At savings institutions) 5.50%

Tax-Exempt Bonds 8.37%

Money Market Funds 7.52%

Bank Money Market Accounts 6.88%

Home Mortgage 12.61%

Unsecured Personal Loans (Minimum faxed rate, 3-year maturity)

Chase Manhattan, New York 16.75%
Continental Illinois, Chicago 17.00%
Bank of America, San Francisco 19.50%