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Interest Rates are Poised to Fall: Here are Four Investment Opportunities
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... worth looking at are insurance companies, banks, real estate-related businesses and small business that had been hampered by high-rate debt. When the Fed cuts the benchmark federal funds rate, lower ...
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What “Higher for Longer” Interest Rates Could Mean for Your Investments
(Main Content/blog)
... in related businesses. Meanwhile, I'd be very careful and selective with corporate bonds in a high-rate environment. There are a lot of debt-laden companies out there, and with higher rates, the risk ...
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We're Not Out of the Woods
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... companies loaded up on debt when interest rates were low. Much of that debt will have to be refinanced soon, at rates that could be triple those of the original debt. That will be a major headwind for ...
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When Will Stocks Get Back in the Black?
(Main Content/blog)
... whose stocks have cratered throughout 2022. Most of the hot young tech companies are dependent on debt, and as interest rates rise they'll be forced to refinance that debt at higher interest rates. More ...
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A Big Market Shift is Underway
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... stocks that have boomed despite having lots of debt and little earnings are falling out of favor. Such stocks rely to a greater degree on borrowing, and are sensitive to interest-rate hikes, which increase ...
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How to Invest for Inflation
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... other fundamentals. They also tend to carry low debt and pay dividends, and they’re known to withstand inflation better than growth stocks. I believe that inflation is likely to persist ...
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What to Know About the Short-Squeeze Trend
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... situations going forward. There will be lots of hype, and stories about regular people making enough of a profit to pay off their debt or buy Teslas. But short-term trading is a zero-sum game, and someone ...
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Vaccine News Shakes Up the Market
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... debt level, their current stock price and their competition in the market. Please don't hesitate to call us if you'd like to schedule a review of your investments. ...
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President Trump's Coronavirus Diagnosis: Market Impact
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... in the restaurant and hospitality, airline and cruise industries are really attractive in many cases. But these companies tend to be loaded with debt, and their revenue prospects are dim. With health restrictions ...
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Raise Cash, Look for Opportunities
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... debt stay in business and make a profit. I'd even look at airlines here, not as long-term investments but as short-term, opportunistic plays. Southwest Airlines stock, for example, has lost more almost ...
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Be Very Careful Here
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... lots of debt, and most real estate. And while some badly beaten down stocks in the airline and hospitality industries may bounce back over the long term, there is very, very little visibility into the ...
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Fear Means Opportunity
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... in line for government help, have way too much debt and uncertain futures. That means avoiding the temptation to buy, for example ultra-cheap energy companies and airlines. In other words, don't invest ...
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What to Do Now
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... for the U.S. shale oil industry, which needs relatively high prices in order to keep repaying its high levels of debt. Stocks have been selling of because investors believe these two events will create ...
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The Coming Corporate Debt Cliff
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... and decisions by the Federal Reserve. Less attention has been paid to a trend that is at least as important: the corporate debt cliff. The exceptionally low interest rates of the past decade have prompted ...
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The Investment Outlook Is Changing
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... is to rebalance into high-quality companies with low debt and a track record of increasing dividends. Those dividends can be reinvested to help compound your gains more quickly, or they provide reliable ...
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What the Market Plunge Means for Investors
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... interest rates make it more expensive for them to borrow money or refinance old debt. Revenue that would have dropped to their bottom-line profits instead must be diverted to pay that extra interest. Rising ...
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What Will Kill the Bull Market?
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... raises interest rates too quickly. Rapidly rising rates would make it harder for consumers to pay off variable rate debt. That pain would ripple through the economy, eventually hurting companies' sales ...
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How to Get (and Stay) on Track for Retirement
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... retirement savings, and debts such as home loans—they are actually using. Remember that in retirement, you will likely not have the same expenses you currently do. Retirement savings won't be necessary, ...
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Opportunities But Also Risks in High-Yield Bonds
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... A high-yield bond is debt issued by a corporation with a lower credit rating than "investment-grade" debt. They are rated below "BBB" by credit-rating agency S&P, and below "Baa" by its competitor, ...
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Record-High Stocks: Good News or Bad?
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... in China, the Greek debt crisis or a host of other nasty events. Reversing the trend of rising stocks will require something more serious, such as the default of a major country, or a decision by the Federal ...