The Only Game in Town

Stocks are now officially virtually “the only game in town.” As of Thursday’s announcement by the US Federal Reserve, their benchmark interest rate will remain at near-zero for the foreseeable future. The “foreseeable future” has been indicated as at least 2022 and perhaps beyond. The “benchmark interest rate” set by the Fed dictates interest rates on most money markets, bonds, and CDs – and most mortgages. This discussion is focused on bonds, CDs, and money markets versus stocks.

In this environment where “stocks are virtually the only game in town” for investors looking for return, rebalancing is a MUST.

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New World… Of Higher Bond Yields

Calling it a “New World” is a bit of an exaggeration but since this week the yield on the 10-year US government bond topped 3% for the first time in four years, it was kind of a big deal in the investing world.

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The 10-year US government bond is a benchmark and indicator for a number of things including: mortgages, companies borrowing to grow, the price of oil … and, yes, stock prices. We all know that the “financial crisis” is now 10 years in the past and for the past 10 years interest rates have been super LOW. This has been both positive and negative for investors. Continue reading “New World… Of Higher Bond Yields”

Volatility & the Ides of March: What’s Next?

We have already had more volatility in the first three months of 2018 than we saw in ALL of 2017 and most of 2016 combined. Snow? On the first day of Spring!  Driverless cars on the road… What’s next?

The snow wasn’t the worst part of it. Facebook stumbled this week amidst legitimate concerns of how honest it is with protecting its user data. This is not the first time Facebook has faced the issue of deceiving its users: back in 2012 under a decree with the FTC Facebook had to agree to get user consent in order to share users’ personal data with others.

Ides of March
It’s been an interesting March.  What’s next?

Continue reading “Volatility & the Ides of March: What’s Next?”