Sentences with phrase «bond investors think»

I take it as a sign of the grave distortions in the financial markets that bond investors think slow suicide is the best choice.

And when bond investors think rates will increase, they tend to move to short - term bonds or cash.

Not exact matches

The head of BMO Investments thinks the 60/40 asset allocation ratio (holding 60 % stocks, 40 % bonds for younger investors; the reverse for retirees) is outdated.

«We've always thought that international bonds should be a large part of investors» portfolio,» Barrickman of Vanguard said.

They get preoccupied with all sorts of things — elections, central bank policies, the weather — but nothing has dominated investor thinking as much lately as bond rates and income stocks.

What that means is that you are in an environment that is going to have further trouble in terms of investment returns that are in areas that are based on economic growth and areas that do relatively well like bonds... Broadly speaking, I think that investors should be looking for lower prices on most risk assets in these developed countries with the exception of Japan.»

While most financial advisors feel that the simple 60/40 allocation between U.S. stocks and bonds doesn't provide enough diversification for most investors anymore, they also think the expanding choice now available to investors cuts both ways.

I just think there are a few things bond investors need to understand about longer maturity bonds, so I was pointing out the possible risks.

Once investors see through that, I think there could be an underperformance in French government bonds.

For bond investors with a short - term investment horizon, it is absolutely critical to think about rising interest rates.

I think the average Investor (when he is not to risk averse) could replace bonds with an dividend - searching - ETF.

In time we think investors will come to realize that, on fundamentals, French government bonds should be trading much further out.

As always, I urge investors to think hard about what role they want bonds to play in their portfolio — be it to mitigate stock volatility, diversify a portfolio or offer steady income potential — and make sure that their investment matches that goal.

This makes sense given how bonds are structured, but I think many investors miss this point when they worry about the potential risks from rising interest rates.

It will be different, so I think it's a great opportunity for investors to look primarily at the bond portion of their portfolio.

Many investors think of real estate investment trusts (REITs) as a distinct asset class because, in aggregate, they historically have had relatively low correlation with stocks and bonds.

Bond guru Bill Gross thinks investors need to «be careful in 2018» and cites six areas they need to watch as the calendar is set to turn.

She literally discussed and answered questions about all of the investing topics I have recently been thinking about — including weighing the pros and cons of placing all of your bond investments into tax - deferred accounts, why Vanguard decided to recently increase their recommended stock allocation to include 40 % international stocks, and how more investors using REITs (real estate investment trust funds) to balanced their portfolios and mitigate risk.

It doesn't matter if you are a fixed income investor considering purchasing bonds issued by a company, an equity investor considering buying stock in a firm, a landlord contemplating leasing a property to an enterprise, a bank officer making a recommendation on a potential loan, or a vendor thinking about extending credit to a new customer, knowing how to calculate it in a few seconds can give you a powerful insight into the health of company.

Many investors think diversification is simply owning different types of assets, such as stocks and bonds.

Mallouk, who is also a member of the CNBC Digital Financial Advisor Council, thinks investors should have enough bonds to meet their needs — and that is all, since returns are expected to be muted.

If five years from now the yield simply returned to its level of a decade ago (and just in case you think I'm cherry picking, over the past 25 years it has averaged a 7.5 % yield and at the low in 1981 was twice that), bond investors would suffer a meaningful loss of capital.

But with long - term bonds and non-cyclical equity sectors trading at historically extreme valuations while cyclical sectors trade at valuations below their long - term average, we think that risk aversion is creating numerous investment opportunities for investors willing to build a portfolio of more economically sensitive companies.

IRVING: I don't think investors should shun bonds just because we're in a rising rate environment.

For passive investing I think Lars has it about right, but I know many investors (including myself if I invested passively) who would add in cash to reduce risk rather than just tilt between stocks and bonds, both of which are volatile.

The dispersion in bond fund returns has been fairly narrow compared to stock funds in the past, but I think there could be a much greater dispersion going forward as certain investors will be able to navigate the challenging fixed income environment better than others.

Highly rated companies that are financially strong and have massive amounts of cash on their balance sheets — think Microsoft, Exxon, etc. — can typically offer bonds with lower yields since investors are confident that the companies won't default (i.e., miss interest or principal payments).

, but I think it's a mistake for risk averse or diversified investors to completely give up on high quality bonds because they're worried about poor returns from low yields.

We think investors should remain diversified in their bond portfolios and resist the temptation to change allocations based on news headlines or whimsical economic flavors of the month.

At this point I want our investors to think about conservation of capital, I want them to think about being wary about these markets, I want them to investigate less volatile places in the market like higher - grade corporate bonds.

I think the biggest problem for many bond investors is they don't know why they're invested in bonds.

Jacob also suggested short - term bond funds as a conservative investment option, for investors who think real estate isn't for them.

And, just when investors thought they had seen it all, a series of outages in the United States gave the mortgage bond market another push up.

If you're a long - term investor, I think you really have to consider the risk - reward relationship in long - term bonds.

In fact, this is one of the main reasons we think GDP could rebound sharply and surprise many investors who have recently been clamoring for bonds and interest rate - sensitive equities.

If investors think the economy will be bullish over the next decade, they will require a higher yield to keep their money tied up in bonds.

We think that's an important development for the diversification of the European bond markets, but also for investors who need to have that global reach to be able to understand all the names being issued in Europe.

Most investors think this risk only applies to stocks, but it can also apply to bonds.

I think it's a very careless time for equity and bond investors from a longer term perspective whereas those of us who are Austrian have a bend for the idea of real money, sound money, and one of the things that looks pretty attractive in a Ponzi finance global macroeconomic backdrop would be precious metals I would say.

Think about it: how much will a bond with a NEGATIVE yield be worth on the day that investors lose confidence in their central bankers» abilities to control the weather financial markets?

I think investors who own bonds to reduce the risk level of their portfolios are also likely to be disappointed.

This also means that triple net lease REITs, which are often used by yield - hungry investors in a low interest rate environment as bond alternatives, can be thought of as very long - term duration bond proxies.

Investors may want to think about taking a percentage of their U.S. core bond fund exposure and allocating it to a hedged international bond market index fund, such as the iShares Core International Aggregate Bond ETF (IAbond fund exposure and allocating it to a hedged international bond market index fund, such as the iShares Core International Aggregate Bond ETF (IAbond market index fund, such as the iShares Core International Aggregate Bond ETF (IABond ETF (IAGG).

«Speculative currency traders are unwinding in the wake of what the markets considered a not - well - thought - of bond sale — it's unsettling investors,» a commercial bank currency dealer told Reuters.

There's no doubt that these are interesting times for fixed income investors, who are increasingly starting to think about bonds differently.

Matt Tucker explains why this is the case, and how investors should think about bonds as they transition to this next phase.

What some investors may not know is that this way of thinking can be applied to bond portfolios.

Do you think international bond investors — those same investors that drove Spain and Italy to the brink of needing sovereign bailouts — will continue to roll over Japanese debt at current rates?

Many investors think that because bonds pay a set amount of interest, they are risk - free investments.

This diversification benefit is the reason why investors should think carefully before abandoning bonds because of their low yields.