The Yield Curve Is Getting Flatter

The stock market endured a mini tantrum on Tuesday in response to a rise in bond yields. The Wall Street Journal described the 10-year Treasury note’s yield as experiencing its largest one-day increase since March 2017. The rise was big enough to cause the benchmark note to end the day with its highest yield in…

 

Most Mutual Funds Do Not Outperform

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Fund Manager Experience Does Not Predict Outperformance Experience by itself does not predict whether or not a mutual fund manager will outperform in the future. Though mutual fund managers who have been the sole manager of their funds have as a group outperformed the…

 

The Art of Creating an Investment Policy Statement

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   The Art of Creating an Investment Policy Statement To build the nest egg you will need for retirement requires discipline and patience. You must treat your personal income and expenses like a business. Typically, this involves having a financial plan that incorporates short-, mid-…

 

Rate Hikes, Inflation and What You Earn

Yesterday’s interest rate hike by the Federal Open Market Committee was the third in a 15-month period. More notably, it was just the third rate hike since the financial crisis. The rate hike represents another step in the (so far) very gradual removal of stimulus. At current levels, rates remain low on a historical basis…