Many market watchers are calling the death of the bull bond market, but this has been the case for the last few years; the yield on the ten-year Treasury bond has leapt from 1.73% to 2.36%, and the yield on the two-year bond has risen as well. Read on for more information about the bond market's ups and downs.
Today's article discusses the bond market's response to President-elect Donald Trump's promises to make drastic tax cuts and infrastructure spending. The post-election bond market suffered a tremendous wave of selling, one that hasn't been seen in recent history.
Today's article reveals the secrets of what wealthy investors do with their portfolios. Members of an organization of North American investors whose net worth is at least $10 million called Tiger 21 completed a survey explaining how they divide their investments.
Today's article outlines some of the more common errors investors make, and provides a three-part strategy that can help errant investors nip these behaviors in the bud.
Today's article discusses the importance of spring cleaning your investments. The author recommends checking to see if you should consolidate and sell extraneous or underperforming stocks and funds, check on your investments to ensure that your asset allocation is balanced, and more.
I have received some questions from clients about a recent report from Barron's pointing out that an analyst is predicting a large drop in companies buying back shares in the second quarter of 2014, compared to the first quarter of 2014. The article suggested that we could see the second quarter drop by one-third of quarter one's total purchase amount. The first quarter of 2014 was one of the best periods on record as seen in the graph further down in the post.
Earlier this year, I offered our thoughts on the bond market and how we review four key areas -- yields, inflation, supply, and demand. Taking a look at these factors again, below I outline our firm's current views:
The bond market -- where it is headed and how that could impact investors -- is an area that continues to make the headlines. Here at Spectrum Management Group, we are always keeping our eye on bonds and their potential impact on portfolios both today and in the future. Our firm focuses on four major aspects that affect the market and therefore our outlook on bonds. Below are our updated views on each:
We recently had a reader comment on the bankruptcy of Stockton, Calif., and ask about our outlook for the municipal market. As mentioned in our initial response, while the bankruptcy of Stockton is indeed problematic, it is important to remember that the municipal bond market is a very diverse space. At the end of 2012, the total size of the market was around $3.7 trillion, and estimates put the number of distinct issuers in the U.S. close to 90,000 -- this number is made up of states, counties, townships, school districts, etc. Therefore, one should not paint the sector with a broad brush.