Why Are Rates Still Low?
Interest rates have been a conundrum for investors, economists and policymakers over the past ten years. Despite steady U.S. economic growth and an unemployment rate near historic lows, long-term interest rates have remained anchored.
Rising Rates: Good or Bad?
Much of the recent investor unease has centered around rising interest rates. There are many ways to think about interest rates: as a tool for generating portfolio income, as an important factor in stock prices, as a signal for the business cycle, as a risk indicator for Fed policy, and more.
Strong Case for Raising Rates
Tuesday produced more highs for the major indices as investors didn’t shy away from Fed Chair Yellen’s less dovish testimony before the Senate Banking Committee.
Negative Interest Rates: How Do They Work?
In recent months the European Central Banks and the Bank of Japan have instituted a policy of negative interest rates.
Financial Synergies 4th Quarter Market Review
This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets.
This Too Shall Pass
So far the New Year has not been a “happy” one for investors. All of the major stock markets are in negative territory, but the major themes have not changed with the New Year. The same issues putting downward pressure …
Duration Risk: What Bond Investors May Not Know
As Mike Booker mentioned in the Q4 newsletter, we think bonds still deserve a place in most portfolios. After all, bonds are ultimately one of the greatest diversifiers an investor can own. Historically, conservative investors have allocated large percentages of …
Washington, the Economy, and Your Money
On April 1st, 2014, Financial Synergies will welcome Greg Valliere, Chief Political Strategist for the Potomac Research Group, to a special client event at Willie G’s in Houston. With over 30 years of experience covering Washington, Greg focuses on the …
Low for Longer: A More Active Approach to Fixed Income
“Low for Longer” is Blackrock’s investment theme heading in to 2014. The Low for Longer tag line is their way of expressing a forecast of tepid economic growth, easy monetary policy and, consequently, low interest rates. Investment catchphrases such as …
Change in Commodities
For the same reason we liquidated our position in TIPS (Treasury Inflation Protected Securities) earlier this year, we’ve made a change in the commodities category. You might be asking yourself, why would terminating a bond position like TIPS prompt a …
Flexibility: The Antidote for Interest Rate Uncertainty
Much of our latest due diligence and fund research has focused on bonds, and that research recently led us to make a fairly dramatic change to our clients’ bond allocations. Three funds have been eliminated from our portfolios and two …
Cash Alternatives: Getting More Bang for Your Buck
As you know, in 2011 we reduced our liquid Money Market Fund (Cash) positions from 5% to 2% in most of our portfolios. We then allocated the 3% balance to the Ridgeworth U.S. Government Ultra-Short Bond Fund (SIGVX). We are …
