Do you like razzle dazzle or would you just rather keep some things low key? When it comes to hair salons, you can find just about any size and shape to suit your comfort level, but if you really want to be the center of attention try Su’s Hair Design in Holmes Beach.

When Su Prudente moved with her husband from South Korea in 1976 she wasn’t really sure what she wanted to do. While living in South Carolina, Prudente met an angel, not a real one, but one that changed her life nonetheless. One day the woman who ran the local beauty school came into the restaurant Prudente was working in and suggested she try hair design as a career, something that had never occurred to her. The next day, Prudente enrolled in beauty school, which she has never regretted and to this day continues to thank her own personal angel for the opportunity

Prudente has been cutting hair since 1985 and has been at the same location in Holmes Beach for 14 years, but don’t be surprised if you missed Su’s Hair Design. It’s easy to do, tucked away in the Island Shopping Center. The salon is a one woman show in a petite intimate space perfect for people who like their privacy and are looking for a quiet and relaxing experience.

But don’t let the size of Su’s dissuade you, Prudente offers all the same hair cutting services that any large salon does. She does cuts and color, highlights, perms, braids and just anything to do with hair in addition to facials and waxing. Su’s carries Aquage hair products for purchase, which is also the brand she uses at her salon, and for men who may not like the traditional salon experience, Su’s could be the perfect fit.

Prudente has built a loyal cliental during her years in Holmes Beach comprised of both seasonal and full time residents. She wants to thank her customers, especially those who have been with her for many years and have helped her build her business and remind all Island residents that she would love to add you to her list of satisfied customers.

When you’ve had enough of the razzle dazzle, visit Su’s Hair Design for a low keyed salon experience in a petite space with a petite woman who has her own personal angel.

SU’S HAIR DESIGN

5320 A Marina Drive Holmes Beach

941-778-0918

Wednesday – Saturday

Appointments preferred

Walk-ins welcome

Visa, MasterCard, Discover

 

In my last column in the Sun, I pointed out that gold may be at risk of further price decline as a higher level of certainty returns as the economic recovery continues. Of course, I don’t know how the future will unfold, and if the right events (mostly bad) occur, then the price of gold could rise. But, with the information we have today, that seems like the less likely scenario in my opinion.

Another scenario also seems to be a logical outcome based on the information in hand today. While we can’t be sure, since the future is uncertain and unpredictable, if history can be a useful general guide, which it usually is, then I believe that investors need to acknowledge the risk of investing in higher quality bonds at the present time.

In the last few years, interest rates have fallen to record lows. The yield on the most commonly quoted bond in the world, the U.S. government 10-year treasury bond has touched lows around 1.5 percent a couple times and recently experienced a rise in yield to over 2.5 percent. While the current yield is still at very low levels historically, the risk of owing a fixed income security in a rising interest rate environment quickly becomes apparent. Just the recent rise in yields referenced above has caused bond prices to drop more than 6 percent in just the last couple months.

Most bonds are issued at a face value of $1,000 and mature at that same price. During the time the bond is issued and until maturity, it pays the rate of interest promised by the issuer. Assuming the issuer of the bond does not default, there is little risk in holding a bond from issuance to maturity. The bond owner receives their principal investment back and the semi-annual interest payments during the holding period. However, what many investors underestimate is the fluctuation in value of a supposedly safe security, which can occur between the date of issuance to the date of maturity.

If the bondholder is forced to sell a safe, even guaranteed, bond instrument before maturity, it is possible to realize a capital loss if interest rates have risen, like we have seen in the last two months or so. So, while the last 30 years of generally declining rates have caused investors to obtain capital gains in addition to their interest payments on bonds, we may have now turned the corner, and capital losses are possible if rates move higher.

Why might rates move higher? A return to normal might be the biggest reason. The average yield on the 10-year treasury bond for the last 80 years has been around 5 percent. So, while the Federal Reserve has depressed bond yields to very low levels to stimulate the economy, it would be foolish to assume rates will stay this low forever.

Again, I don’t know what bond yields will do in the next few months, but it seems that acknowledging the risk of rates moving back to normal historical levels is a reasonable assumption. Does earning 2.5 percent annually for the next 10 years sound like a good benefit if you could lose 10 percent of the value of the bond in a year if interest rates rise? I don’t want to imply that bonds don’t have a place in your portfolio, but the idea of bonds providing returns on par with stocks like they have for the last decade seems like a fool's bet. The message – don’t be over-loaded on bonds in a recovering economy with rates still at very low levels compared to history.

Tom Breiter is president of Breiter Capital Management, Inc., an Anna Maria based investment advisor. He can be reached at 778-1900. Some of the investment concepts highlighted in this column may carry the risk of loss of principal, and investors should determine appropriateness for their personal situation before investing. Visit www.breitercapital.com.