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Tag Archives: Bonds

November 2008 Issue & Supplement

Has Murphy’s Law taken over the economy and stock market? In recent weeks, it seems that just about everything that could go wrong, has. Retail sales and industrial output are skidding while unemployment and foreclosures surge. Even the passage (after much dickering) of a $700 billion financial “stabilization” program by Congress proved unable to stop a waterfall plunge in stock prices.

Grim tidings, these. As investors, though, we know that the important question, always, is: What happens next? Will conditions get better–or much worse?

In this month’s visit, I’ll help you understand the odds. I’ll also show you how to profit from the inevitable recovery when it comes, while protecting yourself in case Wall Street continues to stumble longer than any of us hopes.

November 2008 Issue & Supplement

Has Murphy’s Law taken over the economy and stock market? In recent weeks, it seems that just about everything that could go wrong, has. Retail sales and industrial output are skidding while unemployment and foreclosures surge. Even the passage (after much dickering) of a $700 billion financial “stabilization” program by Congress proved unable to stop a waterfall plunge in stock prices.

Grim tidings, these. As investors, though, we know that the important question, always, is: What happens next? Will conditions get better–or much worse?

In this month’s visit, I’ll help you understand the odds. I’ll also show you how to profit from the inevitable recovery when it comes, while protecting yourself in case Wall Street continues to stumble longer than any of us hopes.

July 2007 Issue and Supplement

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.

April 2007 Issue

So it finally happened. The stock market’s Energizer Bunny keeled over. All right, what now?

Legions of investors are groping in the dark, unnerved and uncertain of their next move. Not you and I. We were expecting a timeout for the bull—and we’re taking full advantage of it.

In this month’s visit, I’ll show you how to use the recent unsettled market conditions to fine-tune your portfolio for greater profits. Bargain-priced stocks are popping up all over, including two blue chip stalwarts from our model portfolio that now offer potential returns of 20% or more in the coming year with much lower risk than normal.

I’m also warming again to global investing (a very successful theme of ours in the past couple of years). After a brief absence, we’re back buying China and India, the two most powerful growth engines of the developing world. If you prefer a more diversified approach, I’ve got a pair of globetrotting mutual funds—both among the best in their class—that will take you anywhere you could want to go.

Making Sense of Bonds and Gold

It’s a contradiction—or is it? Two important groups of players in the financial markets seem to be flashing polar-opposite signals. Today, Treasury bond yields plunged to a 10-month low. (Wonderful for our zero coupons!) At the same time, gold prices surged $12 an ounce, to their highest level since early August.

Shakeout for Bonds

The stock market has just lost a good friend. From late June until about two weeks ago, falling Treasury bond yields fired investors’ appetite for a wide range of interest-sensitive stocks, from banks and utilities to real estate investment trusts. Now, suddenly, that impetus is fading.

Bonds Need a Break

The bond market has been hot as a pistol lately. Since peaking in late June, the yield on the benchmark 10-year Treasury note has plummeted almost 70 basis points, to 4.55% at last night’s close. Meanwhile, the share price of our highly leveraged zero coupon bond fund, American Century Target Maturities 2025, has surged 13%.

Bonds: Pause Ahead

August was a good month for stocks. But it was even better for Treasury bonds. A typical long-term T-bond returned a full percentage point more than the Standard & Poor’s 500 index in the month just ended.

Summer Fun for Bonds

There’s joy again — at least a touch of it — in bond land. Yields have fallen sharply since peaking in late June, with the benchmark 10-year Treasury closing today at 4.81% (down 43 basis points since June 28).

April 28, 2006

Buy what’s down! Stock prices put on a mixed showing this week, as a powerful rally in bank stocks offset weakness in technology and small caps. We expect more of this whiplash action in coming weeks.