With the Fed hiking short-term interest rates for the first time in almost a decade in December, and signaling to investors that additional interest rate hikes are going to come at a gradual pace, the fixed-income landscape has the potential to change profoundly over coming months, quarters, and years. Is your portfolio prepared for such a change? If you have been reaching for yield in long maturity bonds or low-quality securities, because let’s face it, the Fed has deprived Americans of yield for far too long, now is the time to reexamine your fixed-income portfolio. If interest … [Read more...]
Why Rollover Your 401(k)
You wouldn't be the first person to wonder who in the world comes up with these phrases: "Rolling over your 401k." As if investing isn't confusing enough, the wording is so bad you can't help but think about a dog trick. This is supposed to be serious stuff. Most of you corporate warriors that have a 401k, and are in or near retirement, have figured out what a rollover is by now. It's when you transfer your 401k contributions into an IRA. 401k Contributions Are Free Money I love the 401k as a savings vehicle. It's a great way to get free money from your employer. But it is lacking … [Read more...]
The 2016 Stock Market Outlook
Where are stocks headed in 2016? Will one of the longest bull markets on record finally come to an end in 2016 or is there enough gas left in the tank to push the market to higher highs? According to the strategists at Wall Street’s biggest banks, you should expect moderate stock market gains in 2016. The average estimate according to Wall Street strategists is for the S&P 500 to close the year at 2200—an 8% increase from yesterday’s close and a 10% gain from the time the estimates were made. If an 8% to 10% gain sounds like a familiar forecast from this crowd, that’s because it is. The … [Read more...]
Vanguard GNMA Outlook 2015
Originally posted May 22, 2015. (See Part II by clicking here). With long-term interest rates rising sharply in recent weeks, many investors are wondering what they should be doing with their bond holdings. How do bonds perform in a rising interest rate environment? That answer of course depends on the type of bonds you own. Are they short-maturity bonds or long-maturity bonds. Are they corporate bonds, Treasury bonds, or mortgage backed securities? What are the ratings of the bonds? Are they dollar denominated bonds or foreign currency denominated bonds? Lots of variables to … [Read more...]