Although there is less interest rate risk in purchasing short-term bonds/bond funds, the returns on those investments do not keep pace with inflation, so I don’t maintain a very high percentage of short-term bonds in my bond portfolio except when I know I will be using those funds for immediate expenses. In many of my articles I have recommended a balanced portfolio, consisting of both common stocks and bonds, especially in or near retirement. In retirement, I have maintained a 50-50 ratio of stocks to bonds, in order to avoid significant fall in portfolio value during a bear market in stocks. Bond investors have many options. When the Federal Reserve raises interest rates, frequently the value of long-term bonds will fall significantly. At such times, I adjust my portfolio so that a significant part of my bonds is not long-term , but in intermediate- and short-term . I prefer investing in mutual funds or exchange-traded funds (ETFs) rather than individual bonds. That way, I … [Read more...] about Pros and cons of short-term bonds
Short term investing
The Switch Data Sector houses rows of multicabinet heat containment chimney pods that channel computer generated heat up and out of the data center at the Switch Core Campus in Las Vegas on Monday, Jan. 15, 2018. (Michael Quine/Las Vegas Review-Journal) @Vegas88s Las Vegas data center services company Switch has seen its stock fall about 26 percent since it missed earnings expectations Monday and about 37 percent since going public in October. The stock went from $14.32 a share Monday morning to $10.66 Wednesday morning. Switch had raised about $530 million from its October initial public offering, $17 a share. The company’s performance has some on Wall Street questioning the short-term investment value of the company. In the company’s second quarter earnings call Monday, Switch President Thomas Morton blamed the earnings miss on a delay in pay from Switch customers because it is taking longer than expected to move clients onto Switch services. Some clients need help with … [Read more...] about Wall Street questioning short-term investment value of Switch
Why do you invest? If you’re like most people, you’d probably say that, among other things, you want to retire comfortably. Obviously, that’s a worthy long-term goal, requiring long-term investing. But as you journey through life, you’ll also have short-term goals, such as buying a second home, remodeling your kitchen or taking a much-needed vacation. Will you need to invest differently for these goals than you would for the long-term ones? To answer that question, let’s first look at how you might invest to achieve your longer-term goals. For these goals, the key investment ingredient is growth – quite simply, you want your money to grow as much as possible over time. Consequently, you will likely want a good percentage of growth-oriented vehicles, such as stocks and other stock-based investments, to fund your 401(k), IRA or other accounts. However, the flip side of growth is risk. Stocks and stock-based investments will always fluctuate in … [Read more...] about How can you meet your short-term goals?
Millennials are Quick to Invest in, as well as Divest, Underperforming Investments GREENWICH, Conn., April 11, 2018 (GLOBE NEWSWIRE) -- AMG Funds LLC, the U.S. retail distribution arm of global asset management company Affiliated Managers Group, Inc. (NYSE:AMG), released survey data today revealing that Millennial investors tend to make impulsive investment decisions. The survey polled approximately 1,000 individual investors with over $250,000 in household investable assets. Although Millennials see themselves as “aggressive” in making investment decisions, this characteristic is reflected in neither their long-term goals nor reactions to significant market movements. /EIN News/ -- AMG Funds’ survey investigated investor attitudes and behaviors around investing, finding that Millennials allocate only one-third of their portfolio to equities (compared with 45% for older generations), yet expect to earn 12 percent annually in the long run. This generation believes … [Read more...] about Millennial Investors Driven by Short-Term Outlook, According to AMG Funds Survey
By Ben Eisen and Ben Eisen The Wall Street Journal BiographyBen Eisen @BenEisen ben.ei[email protected] Chelsey Dulaney Chelsey Dulaney The Wall Street Journal BiographyChelsey Dulaney @chelseydulaney [email protected] March 27, 2018 8:00 a.m. ET 142 COMMENTS Companies are paying the most in nearly a decade for some types of short-term borrowing, the latest threat to a long-running U.S. economic expansion and increasingly volatile markets. The three-month London interbank offered rate climbed to 2.29% in the U.S. on Monday, its highest since November 2008. Libor measures the cost for banks to lend to one another and is used to set interest rates on roughly $200 trillion in dollar-based financial contracts globally, from corporate loans to home mortgages. Libor has been rising for the last 2½ years as the Federal Reserve lifts its key policy rate, but recently the pace has picked up. It has climbed nearly a full percentage point in the last six … [Read more...] about Libor’s Rise Accelerates, Squeezing Short-Term Borrowers