“Considering how low bond yields are now, U.S. investors may want to try to think more creatively about their asset allocation,” notes the author of today’s article. One avenue investors may want to consider? “Treasure assets” (art, watches, fine wine, rare coins, high-end cars and more) which, despite their ability to help preserve wealth, make up a significantly lower percentage of Americans’ portfolios compared to global investors. For more on the potential role for treasure assets in your portfolio – including how various treasure assets have performed over the last decade – CLICK HERE.
Short-term interest rates continue to inch higher – and the author of today’s article lays out several reasons why “prospects for higher long-term interest rates are still significantly greater than many forecasters would have you believe.” So what are fixed income investors to do in this rising rate environment? The author highlights one option to consider: defined maturity bond ETFs. For more on the potential benefits of defined maturity ETFs – and bond laddering with them – CLICK HERE.
Rates have been ticking up (and further increases are expected this year) but we are still in a low yield environment – and will likely remain in one for some time to come. So where can investors find income in this environment without taking on too much risk? Today’s article makes the case for considering convertible bonds (which can be converted into stock of the issuing company), noting that “convertibles are uniquely positioned to offer the growth potential of stocks, but with the income and downside risk management characteristics of traditional bonds.” For more, CLICK HERE.
While the trading of cryptocurrency assets is garnering a great deal of interest, today’s article notes that some investors are looking to be able to trade traditional assets – such as stocks, bonds, options and gold – in the same manner – and the author proceeds to highlight “three new operators [that] are among those developing trading platforms to meet this need, with blockchain-based tokens pegged to the underlying assets.” To read more about these three up-and-coming trading platforms, CLICK HERE.
An engineering and construction company that could get a boost if Congress is able to pass an infrastructure bill, a supermarket chain that could be the target of an acquisition, and an insurer that could see its profits rise if the interest rate on bonds continues to creep up in the coming years. These are three of the four companies highlighted in today’s article that the author believes are bargains – with their stock trading at book value or less. For more on these four stocks, CLICK HERE.
This summer has been one of record highs for stocks and multi-year lows for market volatility – but today’s article cautions that September could bring a sudden dose of volatility that investors should be prepared for. The catalyst? The September 29 deadline for Congress to raise the debt ceiling or risk the government defaulting on its debts – a scenario the author notes “would likely result in a sharp reduction in risk appetite, potentially sparking a bond rally and an equity sell-off….” How can investors prepare for this possible return to volatility? CLICK HERE for more.
If you aren’t familiar with convertible bonds, now may be the time to get familiar with them. As today’s article explains, “convertible bonds pay a regular interest coupon, just like a bond, but if the stock of the issuing company does well, the owner of the bond can convert it into shares and make an even bigger profit” – and the author proceeds to outline why convertibles may be a particularly smart buy now. What are the three reasons he highlights – and what have studies found to be the “sweet spot” when it comes to the percentage of a portfolio allocated to convertibles? CLICK HERE to find out.
Should you make room for some “true relics from the past” in your portfolio? The author of today’s article makes the case for giving some consideration to “boring old Series EE savings bonds” and puts forward two key reasons to do so. Reason #1? The bonds’ favorable tax treatment. But it’s the second reason — involving a “less-recognized advantage of buying Series EE savings bonds right now” — that might be the most convincing. What is this reason? CLICK HERE to find out.
“Is the market correctly forecasting real estate doom… or is Mr. Market working himself into a stomach ulcer over nothing?” asks the author of today’s article, who assesses the state of the real estate investment trust sector – which has gotten clobbered over the last several months after peaking in July. So, against the backdrop of a rate hike by the Fed and a spike in long-term bond yields (both of which are assumed to be bad news for REITs), what does the author see ahead for REITs? CLICK HERE to find out.
When it comes to what lies ahead in 2017, today’s article notes that “the consensus, broadly, is that the 35-year bull market in bonds is over, inflation is back, central banks are maxed out, and for the first time in a decade any stimulus to the global economy will now come from governments.” But one need only look to the results of the election to be reminded how wrong the consensus can be. As such, today’s article looks at some “against the grain” calls and potential “black swan” events for the coming year. To read more, CLICK HERE.