Understanding profit is one of the most important lessons anyone can learn when starting or running a business. And the best way I’ve ever heard profit described is: “What’s left.”
So why are investors running to bonds? Are they expecting a market crash? Do they think Janet Yellen and Co will keep rates low forever? There’s a simple problem here: rising rates, falling bond prices.
Do you know what Warren Buffett was doing while everyone was running for the doors in 2008? He was buying American, because that’s when it was the cheapest.