interest rates

Signs of Leadership Change: Growth vs. Value Stocks

This is an excerpt from Growth vs. Value Stocks: Signs of Leadership Change on ETFguide TV with Lance McGray at Advisors Asset Management. This episode examines: Signs that could trigger a leadership change between growth and value stocks Capturing growth and value without sacrificing quality  Understanding how diversification within strategies works Positioning your portfolio for …

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How Safe are Bonds?

News flash: Investors who assumed their investments in conservative bonds and bond funds (Nasdaq:LSBRX) were safe from losses are learning otherwise. Since mid-2016, the performance for U.S. bonds (NYSEARCA:BND) with top credit grades have sunk almost 4%. For perspective, the 12-month yield on ETFs tracking the Barclays U.S. Aggregate Bond Index is just 2.40%. Put another …

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Lagging Small Cap Warning Sign For Stock Market?

2015 Outlook: Wall Street Hates Bonds

It’s that time of year again. You know, the wonderful season when Wall Street’s strategists crawl out of their crevices to make predictions about the year ahead. What are they prophesying for 2015? Wall Street foresees grave danger and disaster in the bond market. (Audio) Listen to Ron DeLegge @ The Index Investing Show This …

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What Stock Market Sectors are Gaining the Most from Low Rates?

We can officially count 2014 as another bad year for Wall Street’s investment strategists. Not only were they dead wrong about their prediction that interest rates would rise. They were also wrong about bond prices crashing. And 2014 isn’t yet over, yet with moxie and bravado, Wall Street is already predicting higher interest rates for 2015. (Audio) Listen to …

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Bubbles Floating

So this is the Bursting of the Bond Market’s Bubble?

Never mind which company Bill Gross is working at this week. The talking heads on Wall Street have been ranting about the bursting of the bond market’s bubble for years and it’s getting old. They did it in 2009. They did it in 2010. They did it in 2011. They did it in 2012. They …

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BBQ Grill 2

Treasury Doomsayers Get Grilled by Hated Rally in Bond Prices

In late 2013 just before the Federal Reserve began its scaling back on monthly Treasury bond purchases, the conventional wisdom was that interest rates would rise and bond prices would fall. Invariably, the consensus opinion was – at it has been since “quantitative easing” or QE began in 2008 – that “interest rates have nowhere …

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Ocean Waves

Bull Market in Borrowing: Corporate Debt Skyrockets to $9.6 Trillion

How healthy are corporate balance sheets? It depends who you ask. One news outlet said that U.S. firms are hoarding a record $1.6 trillion in cash led by Apple, Google, and Microsoft. Shockingly, that same report made no mention of corporate debt levels, which are also at all-time records. During the previous 2009 recession high, …

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Boxer Vintage Mecca Card

Don’t Let the ‘Great Yield Slide’ Punch You in the Nose

At the beginning of the year, the yield on 10-Year U.S. Treasuries was just shy of 3% and appeared ready for takeoff into the stratosphere. Alas, the long-awaited period of runaway interest rates had arrived! The something weird happened. U.S. Treasury yields (ChicagoOptions:^TNX)– like a schizophrenic mad scientist straight out of the movies – suddenly …

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Government Overspending is Fueling Debt Boom

Each month, our Mega Investment Theme Report organizes the order of major events by their impact and importance. And swelling sovereign debt (NYSEARCA:BWX) continues to be a stubborn trend that has made every single report. In Ernest Hemingway’s classic novel, “The Sun Also Rises” someone asks the character Mike Campbell how he went bankrupt. He quips: “Gradually, then …

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$17.41 Trillion in U.S. Debt, like Stocks, at Record Levels

The Russell 2000 small cap index (NYSEARCA:IWM) just made a new all-time high, but stocks aren’t the only thing topping. U.S. public debt is at record levels too and heading higher. Total outstanding public debt is now at $17.41 trillion, according to the U.S. Treasury Department’s latest daily statement. That’s almost $1 trillion over last …

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Let the Spending Spree Begin!

Debt ceilings have done little to curb the U.S. government’s escalating debt load and if you thought overspending was a serious problem before, welcome to the next cycle. That’s because U.S. politicians just approved a bill that suspends the government’s borrowing limit until March 16, 2015. That means no more last minute showdowns about a …

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