Here are four investment strategies investors can use to avoid losses due to rising interest rates. Photo by Pedro Lasta In this episode you'll learn: The importance of focusing on the present Why bond prices fluctuate as interest rates change. What fixed income strategies avoid interest rate risks. Show Notes Fraying At The Edges by N.R. Kleinfield - New York Times Essays In Idleness - Yoshida Kenko MNY52: Why Interest Rates Are So Low iShares iBonds … [Read more...]
132 Plus: Market Reaction to the Election, MLPs, Taxes and Bond Funds and Health Insurance
This week November 12, 2016 on Money For the Rest of Us Plus look at how financial assets have performed since the election. We answer the question of how correlated MLPs are to oil prices and what is the bull and bear case for MLPs. We also explore how to avoid year-end tax surprises with bond funds. Finally, we look at an alternative to health insurance. … [Read more...]
MNY130 Plus: Employer Stock Concentration, Comparing ETF Strategies and U-Haul Bonds
This week on Money For the Rest of Us Plus we look at how to mitigate the risk holding your employer's stock when you don't have a choice. We also compare the differences and similarities between an S&P 500 equal weighted ETF and and U.S. midcap ETF. We discuss how to handle choosing sub-investments in an investment product that you can't get out of. Finally, we look at the U-Haul Investment Club, where individuals can buy bonds backed by moving equipment for as little as $100. … [Read more...]
MNY127 Plus: TIPs, Individual Stocks and Investment Conditions
This week on Money For the Rest of Us Plus we start off by discussing a leading investment concern; what to do about rising asset class valuations driven by low interest rates. We also look at when inflation indexed bonds are attractive investments. Finally, we explore how to incorporate a portfolio of individual stocks into an asset allocation to determine an appropriate return. … [Read more...]
MNY125 Plus: Bond ETFs and Measures of Market Breadth
This week on Money For the Rest of Us Plus we look at the characteristics of bond ETFs in terms of their pricing and market behavior. We also compare measures of market internals such as a simple 200 day moving and market breadth to see which has been more effective at predicting returns. … [Read more...]
MNY112 Plus: Bond Management, Duration and Adjusting Portfolios
This week on Money For the Rest of Us Plus we discuss how much should one adjust their portfolio if investment conditions turn RED. We also look at the large gains year-to-date for long-term bond funds and what caused it. We also look at how bond managers adjust their portfolios for cash inflows and outflows. Finally, I share some investing facts that are hard to believe. The episode length is 22 minutes. … [Read more...]
MNY103 Plus: Mortgage-backed Securities and More On Peer-to-Peer Lending
This week on Money For the Rest of Us Plus I provide an overview of mortgage-backed securities. What are they and how does one invest in them. We also look at how to evaluate an active fixed income manager. I also answer a question on what happens if a peer-to-peer lender such as Lending Club goes bankrupt. We also take another look at default rates and reasonable expected returns for peer-to-peer lending. The episode length is 22 minutes. … [Read more...]
MNY098 Plus: Who’s Afraid of Bonds?
This week on Money For the Rest of Us Plus I discuss what to consider when investing in a bond ETF or fund. I also discuss the bet Warren Buffet made that an S&P 500 Index fund could outperform hedge funds. The episode length is 21 minutes. … [Read more...]
82: What Assets Return When The Fed Raises Rates
How have various asset classes performed when the Federal Reserve begins tightening by raising short-term interest rates. Photo by Joe Wessells In this episode you'll learn: How interest rates have declined over the decades.What determines interest rates.What are different measures of inflation.How long after the first Federal Reserve begins raising its policy rate have recessions begun.What have stocks, bonds and other asset categories returned one year after the Federal Reserve … [Read more...]
MNY080: MLPs, Bullet ETFs and Laddered Bond Portfolios
This week's Money For the Rest of Us Plus episode reviews the volatile week for master limited partnerships and looks at high yield bullet ETFs and whether they could be used to build a laddered bond portfolio. The episode length is 20 minutes. … [Read more...]
