Go to Top

Tag Archives

Tag Archives: fixed income

On Reopening: We’ve Just Seen The Iceberg’s Tip

New Data Should Accelerate Re-Opening When the pandemic started, the only data available was the number of new cases, existing cases, and deaths. The original models, perhaps based on prior pandemics like the Spanish Flu of 1918, forecast significant deaths, up to as many as 2 million in the U.S., and, of course, mass infections. Based on that, governments all over the world shut-down their economies. New mortality data is now available …Read More

Coronavirus: The Black Swan

  Black Swan taking off (Cygnus atratus) South Island, New Zealand (Photo by: VWPics/Universal Images … [+]VWPICS/UNIVERSAL IMAGES GROUP VIA GETTY IMAGES   The equity market finally had a reaction to the effects of the coronavirus (Covid-19) last week, and it was significant with the S&P 500 falling 252 points (7.4%) from its record high close on Valentine’s Day. As of this writing, most of the fall (209 points) came on Monday …Read More

Learning the basics of bonds

Originally published on Sierra Sun Tahoe Tribune http://www.tahoedailytribune.com/news/opinion/13034234-113/bonds-bond-yield-rate Fixed income investors today have had a difficult time finding yield with the record low interest rates we’ve seen. Bond investors can choose between using mutual funds or can purchase the individual bonds themselves, depending on what is more suitable for their own unique situation. If you are shopping for bonds, there is some basic terminology that you’ll need to understand to …Read More

Are markets overvalued? Is there another bubble?

It is a mistake to think of the financial markets as a single entity. To answer the question as to whether the markets are overvalued or in a bubble, we have to examine each market separately. In the end, the only market that really appears to be in a bubble is the fixed income market. Equities There is evidence that U.S. equities are at the high end of their value …Read More

In the new normal, risk is par for the portfolio

How much risk are you taking in your portfolio? Given the lack of return in the fixed income market and investors’ reach for yield, many are taking more risk than they should. It is traditional financial advice that the risk profile of funds set aside for retirement should vary inversely with one’s age, i.e., the older you are, the less risk you should take. Normally, this would mean that as …Read More