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When to Change an Asset Mix

Submitted by Jim Ludwick on Tuesday, October 20, 2015 - 12:00pm

A lot of investors don’t realize that you cannot simply buy, hold and forget about it. Your investment mix should not be static. How much you have in stock, in bonds and in other instruments hinges on many factors. Like your age.

The Next Debt Crisis

Submitted by Raul Elizalde on Tuesday, September 15, 2015 - 9:00am

You hear a lot of worrying about mounting government debt. But the real danger lies in soaring private sector debt, here and abroad, especially in China. That’s where the next debt crisis will come from.

Giving Up on the Market

Submitted by Jim Ludwick on Friday, September 11, 2015 - 12:00pm

The market’s gyrations in late summer had a lot to do with emotions and less to do with fundamentals. Panic selling on market downturns is always a bad idea. But in August, investors started pulling money out of equity mutual funds, a reverse from July’s inflows. We’ve seen this behavior too many times before.

Your Portfolio’s Bad Diet

Submitted by Joseph A. Clark on Thursday, September 24, 2015 - 12:00pm

With interest rates low – the Federal Reserve intends to raise short-term ones, but only slowly – bond investors don’t get much return and won’t for some time. That entices them into reaching for yield in questionable places, much like people who eat fast food, full of calories, fat and sugar.

Lessons of Puerto Rico

Submitted by Rafia Hasan on Wednesday, September 9, 2015 - 9:00am

Puerto Rico can’t repay its approximately $72 billion in debt. The situation illustrates how our investment approach works and is a cautionary tale for bond investors chasing yield and income.

Rising Rate Jitters: Why?

Submitted by Lewis J. Walker on Monday, August 24, 2015 - 9:00am

The Federal Reserve may raise interest rates slightly this fall. But all in all, deflationary pressures, lower rates abroad and threats from a strong dollar do not portend sustained and significant Fed hikes.

Why Recession Odds Are Low

Submitted by Nicholas Atkeson and Andrew Houghton on Monday, August 10, 2015 - 9:00am

After six years of economic growth, shouldn’t we be looking for a downturn? Not necessarily. Several indicators – interest rates, bank stocks and capital spending – give us reasons for optimism, for the time being.

Not the Time for Bond Funds

Submitted by Raul Elizalde on Wednesday, August 5, 2015 - 9:00am

Bond funds are not the place to be if interest rates start to rise in earnest. Unlike buyers of individual bonds, who can ride out the resulting value drops until their holdings mature, fund investors can get slammed. Their funds, which must routinely buy and sell underlying assets, suffer the full force of the price drop.