Treasury bonds continue to be a stalwart position among income investors and those who opt for credit quality over yield or other characteristics of fixed-income. Treasuries benefit from the highest credit rating possible and are backed by the full faith of the U.S. Government. They are also the most directly susceptible to interest rate fluctuations and would perform poorly during a secular period of rising rates.
One attractive way to own Treasury bonds is through a diversified exchange-traded fund (ETF). This vehicle creates the flexibility to directly hone in on a certain maturity or index methodology in an extremely low-cost and liquid package.
The definition of value is a fierce debate among investors that seek to find intrinsically underpriced assets. Some stand their ground on historical fundamentals like price/earnings or price/book ratios. Others look strictly at price relative to other potential opportunities as a measure of opportunity.
The picture becomes even more complicated when you try to compare or overlay differing asset classes. Income investors often blur the lines between bonds, dividend paying stocks, and alternative income assets. Read more
The market has drifted lower in recent weeks as rising anxiety over a second Fed rate hike looms. I look at some of the top technical and fundamental reasons the market is behaving the way it is. Observations of risk and reward are noted throughout. Charts include: large cap stocks, treasury bonds, oil, energy sector, high yield bonds, REITs, and more. Recorded on May 19, 2016.
Investors have been flocking to the safety of treasury bonds in recent months as volatility in stocks has pressed interest rates markedly lower. In many instances, this has caused traditional treasuries to rally near the top end of their 52-week highs and may indicate a greater risk of rich valuations fighting with waning momentum. Nevertheless, one area of the Treasury market has just started to perk up and may be signaling further strength on the horizon. Read more
In this video series, we take a look at the panic that has gripped the stock market in the first month of 2016. This review includes several key charts, trends to watch, and important levels we are monitoring at this time. Recorded after the market close on January 28, 2016.