How to Position Your Bond Portfolio as Short-Term…
There’s been a major change in one of the bond market’s favorite indicators: the yield curve. After roughly two years of “inversion,” yields are now behaving like they do most of the time, with longer-term bonds yielding more than short-term ones. This may seem like inside baseball, but it has real implications for bond investors. […]
Locked out of the US housing market? Here’s how to win ‘revenge’ in the meantime
Hacked off with soaring housing costs and stubborn mortgage rates? Disgusted by skimpy supply and the fierce bidding wars that are now required to find a decent place to live? If you’re looking for revenge, buy mortgage-backed securities. No, investing in these lesser-known financial instruments won’t directly cut high housing costs. But it will position […]
Bloomberg New Economy: Indonesia Shows How to Handle the US-China Standoff
Indonesia, the largest economy in Southeast Asia and the world’s fourth most populous nation, hasn’t always had a close relationship with China. In the 1960s, Jakarta accused Beijing of supporting an alleged Communist coup attempt, and diplomatic ties were only re-established in 1990. When China’s then-Premier Li Peng sought to reset the relationship, he said […]
How to construct your portfolio for maximum income in retirement
Attractive bond yields have been a boon for investors, such as retirees, who want to generate income from their portfolios. Yet, those who want to live off the income generated by their investments — without selling any stocks — may want to reconsider how their portfolio is set up. An efficient portfolio typically focuses on […]
How to create a diversified bond portfolio with up to 6% yield
Rising yields were one of last year’s major themes as bonds crept into a bear market. Yields on the 10-year Treasury shot up to as much as the 5% mark in October — a 16-year high — but has since dropped to just above the 4% level. Yields and prices move in opposite directions. But […]
How to create a diversified stock and bond portfolio for 2024
Investors will face a number of uncertainties in 2024, including the question of whether a recession will be avoided or how geopolitical risks will develop. Stocks have been rallying this year, while bonds fell into a bear market — before investors recently started flocking back to this asset. Against that backdrop, cautious investors may want […]
Bond yields will come down in 2024. How to prepare your portfolio
In 2023, you could plop money into a high-yield savings account and get a yield nearing 5% with little effort. Expect to work a little harder for those fixed income returns in the new year. The Federal Reserve’s series of interest rate hikes, which kicked off in 2022, made idle money profitable. One-year certificates of […]