Lower bond yields leave advisers pursuing controversial income strategy
Date: April 29, 2020
Shifting to value stocks just in the nick of time
Signals are flashing that growth stocks are giving way to value strategies Without officially admitting or denying that growth stocks’ decade-long run has come to a close, some financial advisers and market watchers are giving a committed nod toward value stocks as the next train to ride. Last week at Charles Schwab Corp.’s annual conference in San Diego, Jeffrey Kleintop, Schwab’s chief global investment strategist, pegged the shift in momentum from growth to value to the inverted yield curve, which […]
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Date: April 23, 2020
Vanguard: Fed rate cut a ‘high-risk bet’
The fund manager’s chief economist called the decision ‘premature’ should conditions deteriorate further The Federal Reserve’s effort to address the economic risks associated with the spread of the novel coronavirus with an emergency interest rate cut is being criticized for potentially making matters worse. Roger Aliaga-Diaz, chief economist at The Vanguard Group, described the Fed’s 50-basis point cut as, “premature given the lack of data suggesting a significant drag on the economy.” “The high uncertainty around the potential implications of […]
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Date: April 23, 2020
‘Don’t run to gold’ and other advice for pandemic volatility
After two days of stock market drops, some clients are worried As U.S. investors panicked Tuesday amid global reports of a wider outbreak of the coronavirus, financial advisers urged their clients to avoid reacting negatively to the market dip. More new cases of infection were reported outside of China – including dozens of patients now in the U.S. – and the Centers for Disease Control and Prevention warned the public to prepare for widespread contagion within the U.S. The markets […]
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Date: April 23, 2020
Concerns rise about negative bond yields reaching U.S.
Market watchers say negative rates will inevitably follow the next recession As the longest economic expansion in U.S. history continues to get older, it’s only natural that speculation is building over when the next recession will hit. But this economic cycle carries with it the unprecedented potential for something known as a negative-interest-rate policy, and some now see that as inevitable. “If the next recession is anything but mild, the Fed will go to negative rates, which will be a […]
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Date: April 23, 2020
Helping clients understand why they aren’t beating the S&P 500
In the best of times, advisers have to remind clients about the worst of times Big stock market gains can often mean big headaches for financial advisers when it comes to explaining to clients why their portfolio didn’t keep pace with the S&P 500 Index, which gained 30% last year. Aside from the obvious answer that most clients are not 100% allocated to a single broad market equity index, savvy financial advisers are using this time of year to reintroduce […]
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Date: April 23, 2020
Vanguard limits access to the safest money market funds
The asset management giant closed Treasury money funds to new investors in an attempt to keep yields positive In the latest sign of fallout from the Federal Reserve’s attempts to support the economy through the COVID-19 pandemic, The Vanguard Group has closed to new investors its $39.5 billion Treasury Money Market Fund (VUSXX). The move follows a similar decision by Fidelity Investments, which announced a soft close on three Treasury money funds at the end of March. The closings are […]
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Date: April 23, 2020
