Bond Investing
How to Profit from Higher Interest Rates
The Federal Reserve is expected to raise interest rates again. The New York Times writes that the question is not why raise rates but why not.
The unemployment rate, one of the gauges the Fed watches most closely, fell to 4.7 percent in February, a healthy level by historical standards. Inflation, the other gauge, finally appears to be reviving. Prices rose 1.9 percent over the 12 months ending in January, close to the Fed’s 2 percent annual target.
The Fed continues to hold its benchmark interest rate at a level intended to stimulate economic growth by encouraging borrowing and taking risks. It […]
It Is a Mistake to Mix Politics and Investment Strategies
People invest in stocks, bonds or real estate to make money. Citizens vote for politicians who will pursue policies that the citizens favor. In a recent interview Warren Buffett said that it is a mistake to mix politics and investment strategies. That Mr. Buffett is following through on this philosophy is borne out by the fact that he was an ardent Clinton supporter but has poured $20 Billion into the stock market since the election of Donald Trump. In an interview with CNBC Buffett said that how Trump handles the primary threat to US security is how he should be […]
What Are Secure Retirement Investments?
When retirement approaches you do not want to have your investments in vehicles that crash like the stock and real estate markets did in 2008. But what are secure retirement investments in today’s world and what sort of returns can you expect. Phy.org discusses the current lack of secure investments and how it is hindering global growth.
Unless you’ve been following the subject closely, you may not have heard of one of the biggest barriers slowing the revival of global economic growth over the last decade. That would be the “safety trap,” a problem arising from a lack of low-risk investments […]
Should We Blame the Stock Selloff on the Federal Reserve
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Stocks have started the year on a downward track. Energy stocks are hurting due to continued low oil prices and bank stocks have joined in the race to the price bottom. Amidst […]
How Fast Will Interest Rates Rise?
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The general consensus is that the U.S. Federal Reserve will raise interest rates in December. How fast will interest rates rise and what effect will higher rates have on stock investing? Bloomberg […]
Time to Sell Utilities
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Because they typically pay high dividends, utilities are often a stand in for bonds. And like bonds, utilities are sensitive to interest rates. According to CNBC the prospect of the Fed raising […]
Buy US Treasuries to Protect against Deflation
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A recurring economic nightmare, for some, is that China will decide to start selling the $1.4 trillion in US debt that it holds, convert back to yuan and send the dollar plunging. […]
Time to Buy Bonds
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Over the years well-chosen stocks typically provide a better return on investment than bonds. But, this is not always the case. In fact, now may be a time to buy bonds and […]
Rush to Buy Bonds
The stock market seems ready to fall and there is a rush to buy bonds. Bloomberg reports that bonds jump up in price as stocks slip. FREE MASTERCLASS: 3 Secrets to Make Your Money Work for You! “It’s a lot of little factors here that add up to one big mess, frankly,” said Michael Block, […]
Sell Overpriced Stocks
The stock market is taking a hit as investors choose to sell overpriced stocks at the start of 2015. Fundamental analysis of intrinsic stock value is how successful long term investors determine whether to buy stocks with value or sell overpriced stocks. A common approach is to compare the P/E ratio of a stock with […]