Building a Balanced Portfolio: An Unconventional Allocation

It is easy to make money when the stock market is soaring. You really don’t need to read this article to prosper during those favorable environments. However, as experienced investors know, the key to long-term financial success is to survive the troughs. How does your portfolio perform during severe downturns? How vulnerable is it to…

 

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,…

 

You Could Spend More Years Being Retired Than Working

There might be a limit on how long humans can live. Jan Vijg, a geneticist at Albert Einstein College of Medicine, published research in the journal Nature putting the upper limit for longevity at 115 years. More precisely, The New York Times quoted him as stating, “Humans will never get older than 115.” Vijg’s conclusion…

 

Notes from the CFA Conference

The CFA Institute held its annual conference in Montreal this week. The conference draws global speakers from academia, the investment industry profession and even rock ‘n roll—Sir Bob Geldof spoke yesterday. (Unfortunately, he didn’t sing, opting instead to discuss investing in Africa.) The conference also attracts a truly global audience. Yesterday, I sat down across…

 

Look Beyond Your Comfort Zone for Investment Gains

When was the last time you looked at a company you never heard of? How about a company whose name sounded somewhat familiar, but you can’t recall why and otherwise you don’t know anything about? If your answer is rarely, never or not in a long while, you’ve got plenty of company. We humans engage…

 

Fees on Mutual Funds Could Get Cheaper

There is some good news for investors: The war on expenses is continuing. Vanguard recently filed with the Securities and Exchange Commission (SEC) to launch two funds with total annual operating expenses of 0.01%. That is not a typo; the expense ratio was copied and pasted directly from the SEC filing. How cheap is 0.01%?…

 

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…