Are Dispersion and Concentration in the Stock Market Too High?

U.S. large cap stocks, as measured by the S&P 500, delivered a solid performance in the first half of 2024. In January, the index eclipsed an all-time high, and in the five months that followed, it reached 31 more. Volatility has also been relatively subdued. In the first six months, there was only one instance when the index rose or fell by more than 2%…

Bonds Take Center Stage

From: Amundi Asset Management

Short-term bonds may dominate cash in the next phase of monetary policy

• With yields on cash currently elevated, we appreciate why cash allocations have swelled.
• However, as the US Federal Reserve considers pivoting its stance, so too should investors.
• Against the interest rate risk inherent in most fixed income securities, investors should consider the reinvestment risk inherent in cash.
• Shifting exposure from cash to short-term bonds…

When Low Risk Means High Risk

From: www.morningstar.com

Investment caution can be dangerous, too.

Treasury Bill Rivals

In total, 169 mutual funds and exchange-traded funds registered in the US officially list a Treasury bill index as their prospectus benchmark. That selection is indefensible. Every investment has a higher expected return than Treasury bills because every investment is riskier. Thus, the test is rigged. (Insert election joke of your choice.)

Those 169 funds are a…

Top 10 Things to Know About Building a Diversified Portfolio

From: www.morningstar.com

Here’s how some key asset classes fare as portfolio diversifiers and what that means for building your portfolio.

Diversification is a core principle of sound investing. A portfolio that includes assets with different performance characteristics often leads to better risk-adjusted returns than one that relies on a single asset class. But building a diversified portfolio can be easier in theory…

Dustin Murdoff from Mundorf Wealth Management takes a deep dive with Mark DiOrio, Chief Investment Officer at Brookstone Capital Management, on what a Risk-Managed Investment Approach looks like. Here they discuss how Advanced Strategy Diversification is central to that approach.

What’s the Best-Performing Asset Type During a Recession?

From: www.morningstar.com

While bonds disappointed as diversifiers in 2022, they’ve historically performed well during economic downturns.

The Federal Reserve’s campaign to stamp out inflation by lifting interest rates caused pain for both stocks and bonds last year, prompting correlations between the two assets to increase sharply. But surging interest rates have given rise to another worry: Could the Fed overshoot on interest rates, pushing…

Which Type of Dividend Fund Do You Prefer?

From: www.morningstar.com

They may carry the same name, but not the same investment approach.

The ETF Advantage

Last week’s column “Are Dividend Funds All That?” showed that equity funds that hold dividend-paying stocks have thrived over the long term. Usually, bear-market heroes are bull-market flops, but dividend funds have been exceptions. They not only have resisted downturns but have…

Municipal Bonds: An Attractive Opportunity in an Uncertain Time

From: jhinvestments.com

Municipal bonds can offer investors compelling yields without sacrificing credit quality in a late-cycle economic environment.

Municipal bonds are only a small part of the broad fixed-income market, standing at roughly $4 trillion in assets relative to the $53 trillion in total U.S. fixed-income assets. However, this asset class can offer some unique advantages to other parts of…

David Morgan talks with Tom Hardin from Canterbury Investment Management, on extraordinary investment strategies:

David Morgan talks about the importance of being your advocate and how with his elite team of money manageres and professionals REAP earns our clients’ honesty, integrity and trust just as much in down markets as in up….

Check out David Morgan’s video and eBook on Reinventing Retirement: