Risk

BE AWARE OF THE MARKET RISK IN INDEX FUNDS

June 24, 2016

BE AWARE OF THE MARKET RISK IN INDEX FUNDS

BASIC INDEX FUNDS’ ADVANTAGES

  • Broad, unfiltered & unhedged exposure to market
  • Low fees and tax consequences

BASIC INDEX FUNDS’ DISADVANTAGES:

  • Exposure to all companies in index: good & bad, expensive and cheap, profitable & unprofitable

Watch the related WEALTHTRACK episode.

REVIEW YOUR RISK TOLERANCE FOR THE U.S. STOCK PORTION OF YOUR PORTFOLIOS

January 8, 2016

REVIEW YOUR RISK TOLERANCE FOR THE U.S. STOCK PORTION OF YOUR PORTFOLIOS

Watch the related WEALTHTRACK episode.

FOCUS ON COMPANIES WITH FINANCIAL STRENGTH

October 9, 2015

FOCUS ON COMPANIES WITH FINANCIAL STRENGTH

  • Entering a period of increased volatility
  • Many companies have taken on large amounts of debt to take advantage of low interest rates
  • IMF warning of rising corporate failures

3 U.S. COMPANIES SEEN AS BETTER CREDITS THAN U.S. TREASURYS

(as of 10/1/15 – Lower 5-year CDS spreads than U.S. Treasurys)

  • Merck
  • Chubb
  • Cambridge Bancorp

Watch the related WEALTHTRACK episode.

EXPECT PERIODS OF HEIGHTENED VOLATILITY IN THE BOND MARKETS

April 3, 2015
  • Don’t Panic
  • Focus On Long-Term Goals
  • Invest With A Seasoned Bond Mutual Fund Manager

Watch the related WEALTHTRACK episode.

TAKE A LOOK AT MUNICIPAL BONDS

November 7, 2014
  • YIELDS ON HIGH-YIELD MUNICIPAL BONDS WERE SIGNIFICANTLY ABOVE THOSE ON IRAQI GOVERNMENT DEBT
  • PERCEPTION OF RISK IN THE MUNI MARKET DOES NOT REFLECT REALITY
  • FEDERAL INCOME TAXES HIGHER THAN THEY HAVE BEEN SINCE BEFORE REAGAN PRESIDENCY
  • YIELD LEVELS ON TAX FREE MUNIS VERY ATTRACTIVE, ESPECIALLY COMPARED TO OTHER TYPES OF BONDS

Watch the related WEALTHTRACK episode.

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