Your Survival Guy likes a bond ladder, and treasuries certainly need to play a role. Take a look at the treasury yield curve below and notice that rates are much more attractive for bond investors today than they have been in years. New excitement in treasuries is coming as yields have risen and investors flee riskier assets. Matt Grossman reports for The Wall Street Journal: Rising rates carried the yield on two-year Treasurys to 4.206% on Friday, up from 2.925% when the quarter began. That caps the two-year yield’s largest gain through a year’s first nine months since 1981. The … [Read more...]

“Red sky in morn, sailors take warn,” goes the saying. On this morning, the sun was as red as a lollipop, the kind that turns your tongue so red you want to show it to whoever’s next to you. Your Survival Guy heard it’s the dust, spun up from the wind, reflecting off the sun. Scientific American says it’s from the Bible (Matthew 16:2-3), attributed to a quote from Jesus.  "When it is evening, ye say, fair weather: for the heaven is red. And in the morning, foul weather today for the heaven is red and lowering." Your Survival Guy’s 4 Ways to YOUR Wealth NOAA, not Noah of the Ark, has a … [Read more...]

Don’t look now, but we’re in a good entry point for fixed income. If you’re looking to get your lazy cash off your couch and up-and-at-‘em, please get in touch with me. Remember, you don’t need to save the world in a day. Slow and steady wins the race. Read more about investing in bonds here: Why We Favor Laddering Bonds Why Bonds Always Matter to You Bonds vs. Stocks: First Things First Why Buying Bonds Matters in Times Like These Your Retirement Life: Do You Understand the Value of Bonds? Ignore Bonds (at Your Peril) and Be Average, Like the Next Guy Originally … [Read more...]

With the Fed raising rates by 0.75% yesterday, all of a sudden, the bond game is cookin’. We needed this move. And some more down the road just like it would be exactly what the doctor ordered. I’d like to see a continued pace of rate increases like this until “savers” can get some return on their money. The “risk free” rate of return has been far too low for far too long. Will the Fed have the conviction to see it through? I feel like I’m watching Lucy hold the football for Charlie Brown when I get excited about future moves. We’ll see. Stay tuned. Action Line: Until then, the bond … [Read more...]

Do you know how to structure your bond portfolio? When companies issue debt, for example, they put out a spread of maturities and coupons. It reminds me of setting out the spread when sportfishing for sailfish. You have your three lines through the outriggers, for example, on port and starboard with kites keeping them on the surface. You have a couple lines off the stern at high and low depths trying to work the water column. You spread out your options. When it comes to your bond ladder, you want to put a portfolio together that provides income while controlling the two main risks, credit … [Read more...]

Remember, as interest rates rise, you’re able to buy bonds at higher yields. We’re not that far from an interest rate level that will be a game-changer for retirees. I like this from Jason Zweig at The Wall Street Journal: Thanks to the recent plunge in prices, the yield on the aggregate U.S. bond market, at about 3.6%, has doubled since Dec. 31. People always chase the past with their money. Investors added more than $445 billion to bond funds in 2020, largely because past returns were so strong. But by the end of that year, the yield on the U.S. bond market had fallen to barely more than … [Read more...]