Even in the current low-yield environment, I think it is important to dedicate some portion of a portfolio to bonds. However, when I look under the hood of most bond funds, the closest thing I can compare it to is a cable TV package. Most cable companies bundle their TV packages together and split the […]
1) BOND FUNDS If you need income in retirement bond funds may be the answer. The past few years of rising bond prices have generated above average returns for the fund, but the real current yields of the underlying bonds may be much less than what you think. 2) USING SHORT-TERM BONDS EXPECTING RATES TO […]
1. Does your advisor personally identify with your investment planning issues and specialize in working with high net worth clients who have portfolios exceeding $1 million dollars? 2. Does your lead independent financial advisor have more than 25 years of experience in the financial industry? 3. Does your advisor have a team of more than […]
Attached is the updated table ranking asset class returns over the last 15 years which shows last year’s returns led by small cap stocks with commodities posting the largest loss. Often, instead of spreading risk and investing for the long term, investors look at last year’s big performers and want to move significant portions of their portfolio to those asset classes. This chart, however, is not a road map of where to invest for 2014 but an illustration on the importance of allocating risk across asset classes.
September and October were active in terms of headlines but very little in terms of change. The Federal Reserve surprised many analysts when they decided not to begin tapering QE at the September meeting. At the time, the decision garnered many critics considering the persistent signs of economic improvement in our country but looks appropriate now that we are on the other side of the 17-day government shutdown.
A lot has been written about the bond markets recently and much of it has unfortunately been misguided. Bond prices did move lower in May and June as interest rates rose on talk of tapering by the Federal Reserve but what the media has missed is that the bond market is fundamentally different from the stock market and a pullback in one can’t be compared to a pullback in the other.
It’s commonly accepted that bad news sells. It’s one reason the media tends to emphasize negative aspects of events rather than positive ones.
Working in the industry for over 20 years, I have often seen one common mistake made by investors; chasing last year’s hot dot. Very seldom have I seen someone recommend buying an asset class when it’s down significantly or after the media has pounded the table about poor results. All too often the euphoria of […]