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.
Risk
REVIEW YOUR RISK TOLERANCE FOR THE U.S. STOCK PORTION OF YOUR PORTFOLIOS
REVIEW YOUR RISK TOLERANCE FOR THE U.S. STOCK PORTION OF YOUR PORTFOLIOS Watch the related WEALTHTRACK episode.
FOCUS ON COMPANIES WITH FINANCIAL STRENGTH
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) […]
EXPECT PERIODS OF HEIGHTENED VOLATILITY IN THE BOND MARKETS
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
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 […]
Take a look at the U.S. Treasury’s Floating Rate Notes, or FRNs
Watch the related WEALTHTRACK episode.
