In Plus episode 424, we review a recent portfolio trade David made. We look at the valuations of stocks versus bonds. We consider why more preferred stocks are non cumulative versus cumulative. Finally, we review an ETF that invests in AI. … [Read more...]
418: Bond Investing Masterclass
What you need to know to confidently invest in bonds. Topics covered include: Key components of bond investing include face value, coupon rates, yield-to-maturity, duration, and convexity How to decide between owning longer-term or short-term bonds How to decide whether to own individual bonds or bond funds and ETFs When to use active bond management versus bond indexing How bullet bond ETFs work and when to use them How to know when to invest in municipal bonds and … [Read more...]
377 Plus: March 2022 Investment Conditions and Why Bonds
In Plus Episode 377, we review investment conditions as of early March 2022 given the heightened level of certainty arising from Putin's war against Ukraine. We also assist a member who is trying to decide how much bond exposure to have. … [Read more...]
349 Plus: SPAC ETFs, Sector Allocation, and the Frustration of Bonds
In Plus episode 349, we look at why investing in special purpose acquisition companies (SPACs) and SPAC ETFs is even less compelling now given the number of new SPACs. Why David is winding down his SPAC experiment. We explore the challenges of trying to overweight and underweight different stock sectors. We review why it is a frustrating time for bonds investors and why we can't fight the bond market. Also, we look at how the relationship between starting yield to maturity and subsequent … [Read more...]
337: Why in the World Would You Own Bonds?
With interest rates rising does it still make sense to own bonds? Yes. This episode explores the role of bonds including why they are more effective at hedging stock losses than protective put options. Topics covered include: David's business and investment philosophy How bond funds have performed in 2021 Three disparate views on the direction of interest rates from Capital Economics, Ray Dalio, and Hoisington Investment Management Company How to invest in China … [Read more...]
279 Plus: December 2019 Portfolio Review, A Member Profile and Why Bonds
In Plus episode 279 for the week of December 6, 2019, we review changes to David's portfolio and discuss why there haven't been changes to the model portfolios in the past year. We review a member's portfolio and discuss his 25% allocation to an actively managed separate account. We discuss the criteria the member uses to evaluate the manager. Finally, we review why investors would want to own bonds. … [Read more...]
194 Plus: Why Bonds, S&P forward P/E and KYN Merger
This week March 3, 2018 on Money For the Rest of Us Plus, we answer why an investor would ever own bonds if they are going to lag the stock market. We look at the impact of tax reform and a lower corporate tax rate on S&P 500 Index valuations. Finally, we look at the ramifications of the merger of two Kayne Anders closed end funds. … [Read more...]
