Tag Archives: American Century Target Maturities Trust�2025 Portfolio
Will rising interest rates upset Wall Street’s applecart? In recent weeks, a sharp back-up in bond yields (which lifts borrowing costs for businesses and consumers alike) has given stock traders a case of the jitters. Is this the straw that will crack the bull’s spine? Or is it just another passing tremor?
I won’t keep you guessing. I don’t think this latest interest rate scare will derail the stock market’s advance for long. However, it’s also clear to me that the rate background is slowly shifting, worldwide, with major implications for stocks, bonds and a whole bunch of other investments.
In this month’s visit, I’ll show you what those implications are. Hint: It’s more crucial than ever to demand bargain prices—not just “fair” prices—for the stocks and mutual funds you buy. A value-plus-safety strategy like ours is tailor made for the new financial world we’re heading into.
Look for riches in niches! After the sharp stock market run-up over
the past six or seven months, the crop of bargains is thinning out.
That’s hardly cause for panic; hand us a modest, normal pullback in
coming weeks, and a bunch of fresh names will suddenly pop up on our
Even now, though, a select group of stocks have already undergone their
own private “correction.” They’re forming bases on the price charts as we
speak. Now is the time to start accumulating these wallflowers, before they
burst out of their shadowy niches into the sunshine.
In this month’s visit, I’ll show you three of these great values. All are
capable, in my judgment, of making you 20%—and perhaps as much as
30%—wealthier by this time next year, while letting you sleep easy along
Traders returned from the Christmas break in a good mood. The stock market has now put together two strong sessions back-to-back since the holiday, with the Dow Jones Industrial Average closing today at another new all-time high.
In this month’s visit, I’ll introduce you to a select handful of stocks that I’m counting on to lead the market in 2007 and beyond. All of these businesses are riding a powerful demographic tailwind that should propel their growth for many years, perhaps decades, to come. Yet the stocks have only begun to move. We’re five minutes into a transcontinental flight.
In this month’s visit, I’ll explain how a decent cash reserve can add sparkle to your investment results in 2006. I’ll also introduce you to the highestyielding safe vehicles for your cash, such as FDIC-insured bank accounts that will boost your income over almost any money market fund. For the belt-and-suspenders folks among us, I’ll show you how to buy T-bills (the safest investment on Earth) without ncurring a dime in commissions.
Even after the shocks of Hurricanes Katrina and Rita wear off and the holiday spirit takes over, investors will still have to grapple with the Federal Reserve’s increasingly hardheaded monetary policy. Until the rate hikes stop, it behooves us to play the game with extra care. For long-term investors like us, that means two things. First, we want to take advantage of the market’s occasional swoons to fill our shopping car with stocks that have been knocked down too far. One group that has been dented lately (despite excellent earnings prospects) is the oils. In this month’s visit, I’ve got a pair of oil stocks you can lock away for potential returns of 50%–80% over the next three or four years.
In this month’s visit, I’ll show you how Alan Greenspan is unwittingly setting the stage for a big rally in bond prices, starting soon. We’ve seen his hardheaded determination to tighten credit before—and we know the result. Some high-octane Treasury bonds, I predict, will roll up a total return of 15% or perhaps even 20% in the coming year.
Summer bargain days are coming soon to Wall Street. Take advantage of these bargains, and you could turn a so-so year into a very profitable one. In this month’s issue, I’ll talk about how you can safely profit from the pullback which may be shaping up over the next few weeks. I’ll share my latest stock picks and show you the best places to earn high, safe yields on your spare cash. Later, we’ll discuss if mutual funds are still a sound vehicle for building long-term wealth.