While public attention is captured by negative headlines and volatility in the equity and commodities markets, the conversation I can't seem to get away from during client meetings involves income, or more specifically: The need to generate income (from current financial assets and in retirement); and the lack of income now provided by CDs, US Treasury Bonds and high grade municipal bonds ~ traditional mainstays of retirement portfolios. These questions are coming up with increasing … [Read more...] about Mind the (Income) Gap
Oil’s Cheap Lunch
By Anthony Tanner, CFA SWP Guest Contributor This most recent oil bust reflects the long run cyclical nature of commodity prices such as oil. And it is not that far removed from the last significant drop in oil prices in the late 1980's. One sign is the revival of restaurants tying the cost of executive meals to the price of a barrel of oil. In the 1980's, several Houston restaurants garnered national attention for offering executive lunches for the price of a barrel of oil that day. Back then … [Read more...] about Oil’s Cheap Lunch
Opportunities Amid Dislocation
By Anthony Tanner, CFA SWP Guest Contributor We see great potential opportunities in the high-yield corporate bond sector for the following reasons: High-yield bonds provide much higher income in the short-term, and greater potential total returns long-term, derived from the more reliable stream of income rather than uncertain and volatile market appreciation/ capital gains. They've cheapened along with the equity markets, and now offers attractive high single digit return prospects. The … [Read more...] about Opportunities Amid Dislocation
October 2014 Client Update
Dear Clients: In time for Halloween, the markets have been scaring the pants off of investors. Indeed, we face daunting issues: Ebola, ISIS, Russian expansion, deflation in Europe, falling commodity prices. But if today's headlines are robbing you of sleep, rest eas{ier} when it comes to your portfolio: Historically, the best time of the year to be invested is between November 1 and April 30, and indicators point to a good season ahead. More on the markets, the gas pump and the papers in the … [Read more...] about October 2014 Client Update