July 15, 2014
For the past five years, Wall Streeters have been speculating—eagerly, but mostly in vain—that interest rates were about to rise. However, the federal funds rate (the rate banks charge each other for short-term loans) has remained stuck at zero to 0.25%.
Still, it's a pretty sure bet that at some point, the Federal Reserve will snug up its ultra-easy monetary policy—and interest rates will pop. Let's take an educated guess at when that moment might arrive, together with the likely consequences for your bonds and other interest-sensitive investments.More »
May 20, 2014
Stock investors are feeling confused of late–and you can't really blame them. The headline stock market indexes (Dow, S&P 500) edged up in mid-May to all-time highs. Yet many of last year's favorites continue to stumble: biotechs, social media, small caps. Perma-bears, sensing an opportunity to salvage their battered reputations, are snarling into TV cameras with spine-chilling predictions of an imminent crash.
Is it Apocalypse Now? I don't think so.More »
March 25, 2014
Many investors sense that the stock market, after the stupendous run of the past five years, is overextended and vulnerable. Yet even folks who shudder at the market's high-wire act often find it difficult to sell—particularly in a taxable account.
There's a convenient way out of this dilemma.
Don't sell what you own. Instead, hedge. Let me show you how.More »
Thu, 30 Oct 2014 16:15:55 ET
The big 'Fed day' came and went. So how have the financial markets reacted? Other than gold (which has struggled for months to find a bottom), with a long, bored yawn. More »
Tue, 28 Oct 2014 16:30:35 ET
Markets swing from one psychological extreme to another. Two weeks ago, equity investors were in a state of near panic as predictions of another October crash (the much feared 'black swan') circulated up and down Wall Street. So where do we stand now, after a powerful reflex rally -- 9% from the October 15 intraday low to today's close -- on the S&P 500 index? More »
Thu, 23 Oct 2014 16:42:17 ET
Stocks are now comfortably above their October lows. In fact, as of today's close, the S&P 500 index has recovered almost two-thirds of the ground it lost from the September 19 intraday peak to the October 15 intraday bottom. So far, so good. More »
It's not going to happen! As recently as their September meeting, Federal Reserve officials were clucking about raising interest rates at a fairly rapid clip in 2015 and 2016. But the sharp drop in the stock market over the past few weeks has shredded those plans into confetti. Recognize that, and you'll be on your way to understanding which investments are poised to perform well over the coming year—and which aren't.
In this month's visit, I'll show you why the Fed's rate posturing was ill founded. I'll also explain how the new set of circumstances we're dealing with will prove to be a boon for dividend-rich stocks. Certain types of bonds will thrive as the Fed shifts back into a wait-and-see mode. I'll name two expertly managed bond funds that have taken most of the "Fed risk" out of their portfolios. Armed with this pair, both yielding more than double a 10-year Treasury note, you can face the months ahead with confidence. Later, for the faster-growth segment of your holdings, I'll introduce you to three blue chip stocks plus two equity mutual funds that could each generate a total return—dividends plus price gain—of 20% or more for you in the next 12 months. First, though, let's find out why the Fed's forecast for interest rates in 2015–16 is, in all likelihood, way too high—and how you can take advantage of that information to score some safe, relatively easy points off Yellen and Co. More »
I am trying to buy or research a stock you discussed, but the ticker symbol you mentioned in Profitable Investing doesn't work. How can I find the right ticker symbol?
Unlike the common stocks and mutual funds most investors are used to, certain investments, including preferred stocks and international stocks, may have a welter of different ticker symbols depending on what quote lookup or brokerage service you look for them on. More »
Richard E. Band is the newsletter world's #1 authority on investing for low-risk growth. His flagship Total Return Portfolio has quintupled in value since its inception in 1990, while taking far less risk than the popular stock market index funds. More »
[My greatest successes:]
Retired very comfortably at 60 years old, bought a sailboat and vacation home. Most importantly had the time/resources to do volunteer work for Christian disaster organizations overseas & around the U.S. for several years. THANK YOU.
–J.T., Phoenix, AZ