4th QUARTER FIXED INCOME

Bond prices rose as the Fed announced its clear intent to keep interests rates low and as the outlook for inflation in the U.S. remained benign. The yield on the 10-year Treasury was 1.92% at the end of December versus 2.68% at the end of 2018. (Yields move inversely to prices.)  High quality U.S. corporate bonds were up 14% -- their best showing since 2009. 

Our repeated aversion to bonds with long maturities remains firm.  We prefer to find higher yielding alternative investments such as municipal tax liens.