In this month’s video, I look at the technical trends developing in stocks and bonds. Chart review includes analysis of large-cap, small cap, international, Treasury bonds, and gold prices. Observations of risk and reward are noted throughout with an emphasis on moving averages as a source of support or resistance. Recorded on April 11, 2017.
Forecasting the direction of the markets on a quarter by quarter basis is no easy feat. There are simply too many unknowns to determine exactly what will happen and how investors will react to future events on both a micro and macro level. Nevertheless, a look back at recent price action and examining seasonal trends can be helpful to frame expectations. It may also elevate the need for closer examination of your existing holdings and offer consideration for changes to reduce risk or capitalize on fresh opportunities. Read more
Preferred stocks offer the distinction of being unique hybrid instruments with qualities of both stocks and bonds. In that manner, they offer healthy dividend yields alongside a favored position in the capital structure of many companies that issue these securities.
The reason company’s issue preferred shares are to raise capital from investors that are seeking an attractive yield without adding traditional debt (bonds) that carry strict maturity dates and covenants. Preferred stocks can also be “callable” from the issuer, who has the right to redeem them at a certain price or time at their discretion. Read more
In this month’s video, I look at key trends developing in global stock and bond markets. Chart review includes analysis of large-cap, small cap, emerging market, high yield, interest rates, and gold prices. Observations of risk and reward are noted throughout with an emphasis on caution for new money at this phase of the rally in stocks. Recorded on March 7, 2017.
The strength of broad domestic stock market indices in 2017 has been the dominating story in global financial markets. The expectation of new government policies, coupled with the lack of risk asset volatility, has many investors feeling confident in a continuation of the bullish trend.
As of last week, ETFs trading in the United States have accumulated over $75 billion in fresh capital inflows since the start of the year. The majority of that money has gone towards stock-focused index funds such as the SPDR S&P 500 ETF (SPY).