Thought For The Week
Should Investors Sell All Their Bonds?
SYNOPSIS Concerns over rising interest rates have led to more than one market pundit calling for a “bloodbath” in bonds over the coming years. Bloodbaths do not happen all that often, and even so, the term is a relative one. Investors must always remember why bonds are included in a diversified asset allocation. (427) –…
Read MoreThe Amazing Power of Dividend Growth
SYNOPSIS • Those who own stocks that pay dividends have voiced concern over the volatility experienced over the last few months. • The real benefit to owning dividend-paying stocks takes years to materialize. • The most boring companies are often the most profitable investments. (426) – The Amazing Power of Dividend Growth
Read MoreWhy Are Bank CD Rates Still So Low?
SYNOPSIS • The Federal Reserve Bank (Fed) raised their interest rate target this week for the third time since December 2015. • Investors have asked why some rates rise in lockstep with the Fed while others have remained relatively unchanged. • The reality is that returns on cash investments will likely remain at these levels…
Read MoreThis Love Is A One-Way Street
SYNOPSIS • Diversification is the “Golden Rule” of investing, and investors must remain diversified across asset classes, geographies, sectors, and styles. • Investors often over-allocate a portfolio to a single stock because they either cannot sell or choose not to sell, which creates a tremendous amount of risk. • Concentrated holdings should be avoided at…
Read MoreWill We See A Recession This Year?
SYNOPSIS • It’s been close to nine years since our economy recovered from the worst economic downturn since the Great Depression. • Investors are becoming concerned that rising interest rates will lead our economy back into another recession. • The economy will most certainly experience a recession in the future, but the real question is…
Read MoreDon’t Get MADD
SYNOPSIS • Greece is back in the news, but it seems as if nobody cares this time around. • There is an epidemic that has plagued Wall Street for centuries, and investors must do everything within their power to avoid infection. • Fortunately, investors can protect themselves with just a little bit of self-control. (421)…
Read MoreShould Investors Fear Margin Debt?
SYNOPSIS • The margin debt story is viewed by some as a predictive indicator for a future equity market crash. • Margin debt can exacerbate a sell-off, but there is no statistical evidence that margin debt levels can predict an equity market decline. • Although the use of margin debt is never recommended for individual…
Read MoreThe Hot IPO of 2017
SYNOPSIS • This year is slated to be a big one for Initial Public Offerings (IPOs), which is the process where private companies sell their stock to the public for the first time. • The IPO process is one where the biggest investors get access to the best deals, which leaves very little chance for…
Read MoreFun Facts for 2017
SYNOPSIS • Think about how much the world has changed over the last half century. • In the spirit of the New Year, here are 17 fun facts for 2017. • Hopefully these facts will make us all feel a little smarter. (418) – Fun Facts for 2017
Read MoreThe Astrology of Investing
SYNOPSIS • The media has coined the phrase “Dow 20K” to represent the Dow Jones Industrial Average index hovering around the 20,000 level. • The media has a long history of designating major milestones in stock indexes and then running countless hours of coverage surrounding the event. • Bulls and bears have differing opinions, and…
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