2013 was a brutal year for bond bulls. After Ben Bernanke mentioned the word taper in May, bond investors rushed for the door. From June to December 2013, bond mutual funds saw staggering outflows of $176.8 billion. Pimco's flagship Total Return Fund posted a 1.9% decline, its first down year since 1999. That fund saw its assets shrink by over $41 billion in 2013. Many proclaimed that the bond bull market was over and left for dead.
What If You Cannot Afford To Be Hit By The Next Stock Market Crash?
The stock market is going to crash one day, of that you can be sure. Stated another way, Morgan Housel recently wrote at the fool.com:
Markets crash all the time. You should, at minimum, expect stocks to fall at least 10% once a year, 20% once every few years, 30% or more once or twice a decade, and 50% or more once or twice during your lifetime. Those who don't understand this will eventually learn it the hard way.
Well said. The question is, “”How will you deal with it?””
Asset Protection: The Fed, US Dollar and Economy… What, Me Worry?
The investment business can be funny. We all know that there are economic cycles and that the stock market goes through times of boom and bust. However, the conventional “”buy and hold”” approach says that you should not touch your portfolio regardless of what is going on in the world. You are encouraged to “”stay the course”” with no regard to asset protection.
An impartial review of Pacific Life’s Pacific Index Choice Annuity
Warning: this is an in-depth review of the Pacific Index Choice Annuity. Many annuity critics point to complexity as being a major negative for this asset class and Pacific Life doesn’t dispel this criticism. So buckle up and let’s dig …
A red flag? Market divergence may awaken the bear market
Last week, the Dow closed at an all-time high and the S&P 500 traded very close to its historic high. For investors glancing at the headlines, all seems fine and dandy. It's like sailing a boat with beautiful skies and perfect wind conditions. However storm clouds may be right around the corner. Everything isn't signaling a raging bull market, that is for certain.
US Service Sector accelerates in April
The US service sector accelerated in April, rising at the fastest pace in eight months as new orders jumped and overall activity quickened by the most since 2008.
The Institute for Supply Management (ISM) reported that its service index rose to 55.2, up from 53.1 in March. This was ahead of analyst expectations of 54.1. This marks the 52nd consecutive month of growth. A reading above 50 indicates the sector is expanding.