The financial media loves a catch phrase and, with the apparent emotional hook of the ‘fiscal cliff’ diminished, we needed a new one. The current best candidate is the so-called ‘Great Rotation.’ The idea here is that investors, finally and completely fed up with the dismal returns from bonds, are going to move heavily back into equities. This is the ‘Great Rotation.’ When I Google the term, there are 820,000 search results. Not bad for a phrase that was invented in October 2012 (in a research note from Bank of America, apparently). (more…)
Posts Tagged ‘fixed income’
The Great Rotation?
Posted in Tid Bit, Bonds, Stock Investing, Asset Allocation, tagged equities, fixed income, IPOs, re-allocate, stock rally, Tech bubble, The Great Rotation, trends on February 8, 2013 | Leave a Comment »
What Are the Core Asset Classes for Total Return Portfolios?
Posted in Asset Allocation, Bonds, Commodities, Diversification, ETFs, Inflation, Investors, Risk, Stock Investing, tagged Corporate Bonds, emerging market stocks, Emerging Markets, equity energy, fixed income, gold, government bonds, investing strategy, Municipal Bonds, real estate investment trusts, REITs, stock market index, TIPS, Utility stocks on November 28, 2012 | 1 Comment »
One of the most important questions for investors and advisors is identifying a set of asset classes that will be considered for inclusion in a portfolio. Some people will decide that all they need or want is one broad stock market index fund and one bond fund. Others will choose to include Real Estate Investment Trusts (REITs) and commodities. There are well-thought-out arguments that inflation-protected government bonds (TIPS) are a major core asset class. It is also quite common for investors or advisors to break stocks out into value vs. growth and small cap vs. large cap. (more…)
Sector Watch: Municipal Bonds
Posted in Uncategorized, Retirement, Taxes, ETFs, Bonds, Risk, Asset Allocation, 401(k), pensions, retirement income, retirement planning, tagged Target Date Folios, Treasury bonds, high yield bonds, Bill Gross, Municipal Bonds, Meredith Whitney, public pensions, interest rates, folios, Quantitative Easing, QE, fixed income, muni, income exempt on November 19, 2012 | Leave a Comment »
Municipal bonds are issued by states and municipalities and typically have tax advantages relative to other fixed income assets. In general, income from muni bonds is tax exempt at the federal level and at the state level for investors living in the issuing state. Municipal bonds have historically been favored by investors in high tax brackets who, of course, derive more benefit from the tax exemptions by virtue of being in the highest tax brackets. (more…)
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