Tag Archives: interest rates
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
Investors overreact to municipal bond fears
This video from Vanguard Investments is a helpful reviewof the current state of the municipal bond market. Three turbulent months based on speculation about future defaults have shaken munis. The risks appear to be overblown.
The Bond Market Conundrum of 2011 — Part II
Portfolio Management Preferences to Reduce Risk LOOK BEYOND TREASURIES U.S. investors have easy and relatively inexpensive access to a broader selection of bonds than they had in 1994. Non-U.S. bonds provide U.S. investors access to different economic cycles, interest rates … Continue reading
The Bond Market Conundrum of 2011 — Part I
What Happens When Interest Rates Rise Given historically low U.S. interest rates, government stimulus efforts that seem likely to spark inflation and a massive flow of cash chasing returns, many investors think that it is not an ideal time to … Continue reading
Think twice before shifting to ‘safe’ investments
Gary Brooks’s monthly column in The News Tribune was published today. http://www.thenewstribune.com/2010/06/18/1231727/think-twice-before-shifting-to.html It examines perceived safety of bonds and gold as choices to manage investment risk. Two notes you might find hard to believe: Since 1945, government bonds have had … Continue reading
Will Economic Stimulus Ultimately Hurt?
Recently we’ve been thinking about the dramatic changes that the U.S. government has gone through to keep us out of a depression. In the past year, the U.S. government has taken over much of our domestic banking and auto industries. … Continue reading
Bonds less incredible than you think
Here is Gary Brooks’s column from the October 5 Tacoma News Tribune.