A few of you have recently asked what to do with your I Bonds, should you hold or redeem them. This is a good question amid the swirling interest rate environment, so let’s take a few minutes to look at ...
Originally when planning to write this week’s post it was going to be a longer piece about all the minutia of I Bonds, those investments made popular by excess inflation. But then I figured there’s so ...
... Buffett
This quote from the Oracle of Omaha pretty much sums up my feelings about holding cash for too long. Yes, it’s immediately gettable and doesn’t come with any market risk like stocks and bonds ...
... work usually leads to few changes. Instead, it’s often a recommittment to using what we already own.
That said, a real struggle right now is what to do about bonds. The asset class, as we’re all aware, ...
Bonds have been going through a rough patch lately. No, they haven’t tanked in exciting fashion like stocks can do sometimes. They’ve just been boring and uninspiring. They’ve been like dead legs as you ...
... world of bonds. Recent months have seen the stock market rise but prices for bond benchmarks like the 10yr Treasury have fallen. The 10yr Treasury is important to follow because it serves as the benchmark ...
This week let’s review two more finance terms from the YouGov poll: diversification and bonds. Now we’re starting to get into terms that about 60% of people tend to be comfortable with.
Honestly, I’m ...
When rates on CDs are higher than bonds, why invest in bonds at all? If most bond prices are negative so far this year, why not sell them and just deposit the money at the bank where we can earn a couple ...
... mean falling prices). In terms of actual investment impact, the broad bond market index is down about 2.5% since November 7th. Short-term bonds are down about 1.5%, but long-term bonds, which feel the ...
... made by investors about the path of rates. Are they headed higher? That’s usually bad for stocks and bonds, depending on the context. Are they headed lower, which could be good for markets? But are they ...
... performed so far this year:
US Large Cap Stocks: up 10.6%
US Small Cap Stocks: up 5%
US Core Bonds: down 0.7%
Developed Foreign Markets: up 6%
Emerging Markets: up 2.2%
As I just mentioned, ...
... That helped drive stock prices higher and helped bonds as well. But CPI has flattened out for months now at a higher rate than officials at the Fed would like. That lack of direction has created a sort ...
... more and more debt needs to be refinanced. More borrowers who put off moving to avoid having to take a new mortgage at much higher rates will bite the bullet. More companies have to repay their bonds. ...
... of stocks versus bonds at the allocation level in your portfolio. It’s also important to diversify and rebalance within asset classes and styles (growth versus value) to ensure your portfolio isn’t overweight ...
... in with expectations for bonds and plan to do the same for stocks next week.
I usually role my eyes whenever market strategists make annual predictions, but it’s part of their job and I understand that. ...
... had spent the bulk of the year on recession watch while punishing most stocks and bonds. Expectations about inflation, recession, and the Federal Reserve’s interest rate policies were the crux of market ...
... accounts again for losses to harvest as we close out the year. Depending on when you bought you may have losses in emerging markets, bonds, and perhaps alternative energy, to name a few.
Additionally, ...
It’s getting to be that time of year so this week I’m updating an earlier post relating to harvesting losses. Even though core bonds have turned positive for the year, this second year in a row of relatively ...
For this shortened Thanksgiving week let’s look at where the markets are now, sort of a mid-quarter update. You’ve likely noticed that stocks have done well over the past few weeks and bonds have perked ...
The stock market just had its best week of the year last week and bonds also performed well. I call your attention to that because it seems like it’s been a while since the markets had a good week. That ...