Tag Archives: bonds
Returns of diversified investment portfolios – the mirror effect
Modern Portfolio Theory suggests that diversified investment mixes over time should generate the lowest returns with more conservative allocations to stocks and the highest returns using higher allocations to stocks. Allocations with nearly equal weightings between stocks and bonds should … Continue reading
Stocks undervalued but “the best house in a bad neighborhood”
We had an opportunity June 28 to listen to Dennis Stattman, senior portfolio manager of the Blackrock Global Allocation Fund, discuss global investment conditions. His quarterly market assessment is interesting because he and his team of analysts manage a go-anywhere … Continue reading
Strategic vs. tactical investing, our approach
A growing theme in the investment professional literature revolves around the idea of strategic vs. tactical management of portfolios. Strategic assets, or even individual positions, are generally those that are included at the core of the investment mix regardless of … Continue reading
Challenges facing bond investors, reasons to hold them
The following chart from Natixis Investments demonstrates how interest rates impact bond markets, particularly long-term government bonds. Over the past 30 years, generally declining interest rates have fueled bond returns that have easily outpaced inflation (6% real return). But go … Continue reading
Even weak economy can produce good investment returns
Emerging market countries have earned a lot of attention from investors because of their 29.05% average annual return from 2003-2010 (MSCI Emerging Markets Index). Going forward, much of the assumption that emerging markets will continue to lead has to do … Continue reading
Bonds less incredible than you think
Here is Gary Brooks’s column from the October 5 Tacoma News Tribune.