Long-term bond yields are low by historical standards. For bonds, current yield = future expected return. Interest rates have much more room to go up than go down, with the risk of losing money on long-term bonds looming large compared to a very modest increment of yield. Stay away from long-term bonds until their incremental yields over short-term bonds justify their much higher level of risk.
Buy what hedge funds are buying without paying the high fees. Goldman Sachs Hedge Industry VIP ETF (GVIP) holds the 50 stocks most often owned by hedge funds for only .45%, not “2 and 20.” It is updated quarterly based on the 13f filings of U.S. hedge fund managers. It has shown a strong ability to provide risk-adjusted excess return compared to the S&P 500.
Do you know how much you can safely spend each year in retirement? What is the “4 percent rule?” Is it realistic in today’s market? Could an “income annuity” help control your longevity risk and enhance your retirement income? Where does Social Security fit into all this? This article provides vital information, links to studies and databases, and guidance to help you decide on your own spending and investment path in retirement.
Mortgage rates are at all-time lows. Refinance now before the recovery sends rates back up. That’s what I’m doing.
Silver has been on a tear, but is still below its long-term highs and is cheap relative to gold. Like gold, silver hedges market, dollar, and inflation risks. Its return momentum appears likely to continue.
Gold has been on a tear, and its momentum is likely to continue. Long-term, gold is an excellent diversifying of stock market risk. It may also prove a good inflation hedge in the years ahead.
Here are some tips for how to get the best results in your 401k, along with links to many helpful resources.
For the past couple of weeks, the prices of beaten-up value stocks (particularly financials, energy, and cyclicals) have been bouncing up well ahead of the former leaders, growth stocks (particularly technology). Is the “value effect” back? We look at the evidence.
The Fed is pulling out all the stops to provide ample liquidity. Stocks have responded. That is likely to continue.
Negative retail investor psychology has crushed the prices of closed-end funds. They are trading at unusually large discounts to NAV (net asset value). It’s an historic opportunity worth exploiting.