And THAT’s Why We Own Treasuries

What a week it has been culminating with the largest bank failure since 2008 (Silicon Valley Bank). I’ll write a special commentary on that in the coming week as I’m sure there are some questions.

Today, I just wanted to point out why we own Treasuries of varying maturities. They certainly haven’t been the greatest investment for the last few years as the Fed has been raising interest rates, but they are in portfolios to serve a specific purpose over the course of a full market cycle. And, as an aside, now they actually offer some attractive yields that they haven’t offered in about 15 years. Continue reading “And THAT’s Why We Own Treasuries”

Why Do Short-Term Bonds Yield More Than Long-Term Bonds? Who Would Buy Long-Term Bonds Now?

A couple astute observers noticed something about interest rates in my last video. If you missed that video, it can be found here.

Click on the image below to watch today’s short video answering the questions about why short-term rates are higher than long-term rates, who would buy long-term bonds in this scenario and what else does an “inverted yield curve” tell us about the economy? This one is a bit more casual as I wasn’t expecting to make a video today and threw it together fairly quickly. You’d be amazed at how much time goes into even a short video like this!

Enjoy!

 

 

 

 

 

Continue reading “Why Do Short-Term Bonds Yield More Than Long-Term Bonds? Who Would Buy Long-Term Bonds Now?”

Average Retail Investors Down Over 35% in 2022

Executive Summary

  1. Retail investors were down over 35% on average in 2022 as they chased into overvalued and speculative assets that did well in prior periods.
  2. 2022 was generally difficult for even conservative and balanced portfolios.
  3. Wall Street insists on performing the fool’s errand of making12-month return forecasts and got it very wrong in 2022.
  4. 12-year outlook for stocks and bonds.

Continue reading “Average Retail Investors Down Over 35% in 2022”