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Higher Interest Rates Could Hammer Stocks
(Main Content/blog)
... worth looking at the potential impact on markets. The effect of rising interest rates on bonds is fairly straightforward: Rising rates make existing bonds less valuable, since newly issued ones will pay ...
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Time to Make a Shopping List
(Main Content/blog)
... part of the reason they can be so much more profitable than bonds over extended periods. To collect what we call stocks' risk premium, we have to be patient: Over the long term, the market's rise has always ...
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Where to Invest Now? It's Tricky
(Main Content/blog)
... the proceeds, there's no obvious place to reinvest that money. High-quality bonds are unappealing because of their low yields--10-year Treasuries are yielding just 1.3%. And the possibility of rising ...
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How to Invest for Inflation
(Main Content/blog)
... can make a difference. While investors are rotating to value stocks, and selectively holding on to growth stocks, one area to be extremely cautious about is long-term bonds. Inflation ...
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Rising Inflation and Interest Rates: What to Do
(Main Content/blog)
... spurring price inflation. In March, consumer prices rose .6%, their biggest gain since 2012. Accelerating inflation, meanwhile, is pushing long-term bond rates higher. Essentially, the bond market is ...
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Capital Gains Tax Hike a Possibility
(Main Content/blog)
... earning capital gains above $1 million per year. Long-term capital gains — the sale proceeds from stocks, bonds, mutual funds, real estate and other investments that are owned for more than a year — ...
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What the Elections Mean for Your Investments
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... In the year after the opposition party wins the presidency, markets tend to rise—and they rise a bit more sharply when the incumbent party remains in power. (Bonds, by the way, tend to slightly outperform ...
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The Coming Corporate Debt Cliff
(Main Content/blog)
... if economic growth continues to slow. And as they look to issue new bonds to pay off the expiring ones – this is the $4-trillion debt cliff -- they may find fewer investors willing to lend to them. That's ...
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Bond Yields Are Low – So Where Do You Find Income?
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It's difficult to find good income opportunities in the bond market right now. The 10-year Treasury, which was yielding more than 3% last fall, is heading into this fall at 1.7%. That's even less than ...
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Interest Rate Cuts: Too Little Too Late?
(Main Content/blog)
... It's gotten an extra boost from the anticipated Fed rate cuts. But the bond market, which is far larger than the stock market, tells a different story. Investors have been piling into long-maturity bonds ...
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Should You Invest in Real Estate?
(Main Content/blog)
Real estate is often peddled as a get-rich-quick investment—and that lures some people in, and it turns some others off. The truth about real estate is that, like stocks and bonds, it can be a solid ...
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The Investment Outlook Is Changing
(Main Content/blog)
... hefty returns were fueled by low interest rates and economic stimulus engineered by the Federal Reserve to steer us out of the Great Recession. Ultra-low interest rates and the Fed's aggressive bond buying ...
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A Smart Investing Move to Start the Year
(Main Content/blog)
... type (stocks and bonds, for example) after they've been doing well, and buying them after they've been doing poorly. Against the current backdrop, where stocks are down 5% from a month ago, that might ...
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Understanding What Drives the Market
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The stock and bond markets don't move up and down over time for no reason. When they advance or decline, you can be sure that unseen catalysts are at work: Think of the wind hitting the sail of a ship. ...
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What the Market Plunge Means for Investors
(Main Content/blog)
... rates are bad for bond investors too. That's because the issuance of new bonds at the higher rates decrease the value of the old, lower-interest bonds investors may already own. As those longer-term bonds ...
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How to Invest in Bonds as Interest Rates Rise
(Main Content/blog)
Rising interest rates are said to be the enemy of bond investors--and since we're not in an environment of rising rates, many people are wary of buying bonds at all. However, there are good reasons to ...
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Be Smart About Your Tax Windfall
(Main Content/blog)
... have been great for stocks, and less good for bonds. As a result, if you originally had a 50/50 balance of stocks and bonds, those faster-growing stocks might now represent, say, 70% of your portfolio, ...
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How a Tax Failure Could Topple the Market
(Main Content/blog)
... each individual stock, bond or fund in your portfolio passes the test of quality and price. And the best way to do that is to work with a qualified financial advisor. Don't hesitate to contact us if ...
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Choosing the Right Advisor
(Main Content/blog)
... charge a fee based the total amount of assets they manage for you. Brokers are paid to sell investments; they earn commissions each time you buy a stock, bond or other investment, which can create conflicts ...
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Why ETFs Shouldn’t Dominate Your Portfolio
(Main Content/blog)
... say, adding bonds or foreign stocks to the mix. ETFs are like corks on the water, rising and falling with the tides. In a word, they're dumb. That's why my clients' portfolios include individual stocks ...