Management by the dots signals tightening cycle
Payson Swaffield, October 2014
This October marks a milestone for the credit markets, the end of Quantitative Easing. As the Federal Reserve’s focus shifts to more traditional monetary policy, they’re using a new “dots” chart format.
How’s the market feeling these days?
Edward J. Perkin, October 2014
As of September 30, 2014, the S&P 500 was up more than 200% from its bear market low on March 9, 2009 – marking one of the longest bull runs since 1930. Meanwhile, volatility (muted for most of this year) has picked up recently.
Confronting the tax drag
Tom Metzold, Jim Evans, Lew Piantedosi, Peter Crowley; November 2014
The 2014 tax season brought home the unwelcome reality of higher taxes, particularly for high-income earners. The impact of higher taxes on their investment returns can be substantial now and in the years ahead. Left unchecked, taxes can consume a quarter or more of every dollar earned by the average investor.
Solving the Income Puzzle
Christopher Remington, Michael Cirami, Kathleen Gaffney, and Scott Page; July 2014
With interest rates at near historic lows, investors are starved for income. Government bonds and high-grade corporates have generally been the core of investors’ income portfolios, but yields on these bonds are minimal. Delivering a potential double whammy for investors, the prospect of rising interest rates could bring principal losses because the prices of bonds in these core sectors are highly sensitive to changes in interest rates. Diversifying into nontraditional income sectors may provide investors with greater income and lessen their exposure to interest-rate risk.
Are you managing volatility?...or is it managing you?
Tim Atwill, Richard Bernstein, Eric Stein, Chris Sunderland, Brad Godfrey; September 2014
Research shows investors’ personal returns fall short of the equity markets’ actual returns because investors too often make the mistake of buying high and selling low. But there are several strategies investors and their advisors can draw on to take a more disciplined approach to investing.