What’s up with balanced portfolios in 2022? Well, they’re down, that’s what’s “up”. Yes stock and bonds can fall together. Bonds don’t appreciate a rising rate environment. Remember, as bond yields increase bond prices fall. They are inversely correlated. A 5-year bond yielding 1.0% is not as attractive as a recently-released 5-year bond paying 2%. […]
Finding dividend growth tech stocks, on the Sunday Reads.
In early 2015 I sold our U.S. Dividend Achievers index ETF and bought (skimmed) 15 of the largest cap holdings. The goal of investment strategy is greater portfolio stability with the potential of outperformance. The index insists on at least 10 years of dividend growth, it also applies financial health screens. The index ETF (ticker […]
Another look at the defensive sectors in the U.S.
The performance of your stock portfolio will be shaped by your geographic weighting, but mostly by your sector allocation. Certain sectors are more growth oriented. Other sectors are more defensive. Some sectors can prosper during inflation while for others, inflation or stagflation is the kiss of death. On the defensive front, consumer staples, healthcare and […]
The all-weather portfolio. Ready for most anything.
I recently posted a portfolio concept for the all-weather portfolio for 2022. The idea behind an all-weather portfolio is that it can prosper during periods of sun, rain, storms, hurricanes, earthquakes and tsunamis. Of course, in the above analogy weather serves as a proxy for the economic conditions that might arrive. The all-weather portfolio is […]
What is an inverted yield curve? Plus, the Sunday Reads.
If you follow the financial headlines, you have probably read about the dreaded inverted yield curve. The inverted yield curve has a very good record (OK, it’s perfect), in predicting recessions. Recently, the yield curve has inverted, and then reversed course. Many economists and market watchers suggest that for now, the yield curve is simply […]
No longer making sense of the markets. Plus, big dividends for big returns.
I have submitted my last column for Making Sense of the Markets. For almost two years I have scanned the headlines, listened to many economists, observed past market trends to try and make sense of it all. It has been an exciting journey. And what an incredible learning experience. There was never a dull week. […]