Putting the Rise in Bond Yields Into Perspective

Bond yields have suddenly found themselves in the financial headlines. Since Donald Trump became president-elect, the yield on the 10-year Treasury has risen from 1.86% on Election Day to a near-term closing high of 2.22% on Tuesday. That is nearly a half-percentage point jump in just seven days. (The closing yield was slightly higher today,…

 

AAII Weekly Features: The Individual Investor’s Guide to Personal Tax Planning 2015

This week’s AAII Weekly Features highlight these valuable AAII articles: The Individual Investor’s Guide to Personal Tax Planning 2015 Bond Strategies for Those Fearful of Inflation Is Outperforming the Market Alpha or Beta? The Mutual Fund Cash Dilemma The featured AAII stock screen this week is the P/E Relative approach. Our Member Question for this…

 

Forgotten By Some, Inflation Is Far From Gone

In an article for InvestmentNews, Rusty Vanneman reminds investors to be mindful of inflation. The reason being is that, although inflation has been a non-issue for the last several years, there are some signs that inflation may be starting to return. The Core Consumer Price Index (Core CPI) is nearing 2% year-over-year growth, ignoring food…

 

TIPS for a Low-Inflation Climate

In an article for WSJ.com, Michelle Perry Higgins discusses Treasury inflation-protected securities (TIPS), and how they may fit into bond allocation strategies in a low-inflation environment. When TIPS are issued by the Treasury they come with an interest rate that doesn’t change, like most bonds. The inflation protection works through increases in the principal value of…