Leader Capital is a Mutual Fund Company specializing in fixed income investments. Through our Short Term Bond Fund and Total Return Fund, we outperform by taking an opportunistic approach rather than tactical; we manage the risk reward relationship of every investment with our proprietary model.
LEADER CAPITAL NEWS AND COMMENTARY
"Where Are Rates Going in 2014?" 1/2014
Leader Capital is adjusting its 12 month interest rate targets. Our new targets are as follows:
- 2.25% for the 5-year treasury
- 3.5% for the 10-year treasury
- 4.5% for the 30-year treasury
Corporate Credit vs. Sovereign Debt 7/2012
Corporate Bonds will outperform U.S. treasuries for the foreseeable future based on fundamental credit metrics, less supply, and higher demand.
The U.S. government is on a low dollar policy and therefore will not raise the Fed Funds target rate until our competitive posture in the world economy is on solid ground and our deficit increases are outpaced by GDP growth.
It is our conclusion that the consumer is out of the game and will be until actual GDP is 4% (or better) and 30 year mortgages are at 3.75%, or both... Unemployment should peak at 24% (U6) and 15% (U3) so we believe another 5% of the workforce will be on the dole by 2nd Quarter 2011...
The United States and the world are heading toward a downward spiral in pricing and upward spiral in borrowing costs... We believe coporate earnings will be approximately 43% less...
The DOW is approcaing retracements not seen since 1973 and 2001...approximately 44% (down). Our opinion is there will be a trading range between 7,800 and 10,900 into 2009...
Our top down view going forward indicates a similar scenario to the S&L crisis beginning in 1985.
CONFERENCE CALLS and Summaries:
March 17, 2008 Dow 13,000 Near Term, 8,800 by Summer
June 24, 2008 We Reiterate Sell Munis
March 31, 2009 Mini Hooverville, Dow target of 9600