Sentences with phrase «bond returns only»

For example, when the Fed raised rates from 1 percent to 5.25 percent from June 2004 to June 2006, traditional bonds returned only 2.9 percent.

For example, when the Fed raised rates from 1 percent to 5.25 percent from June 2004 to June 2006, traditional bonds returned only 2.9 percent.

Not exact matches

He says that if you can get only a 2 % return on bonds — rates we're seeing today — and 5.5 % yields on blue - chip stocks like BCE, it makes sense to overweight stocks, no matter what your age.

In other words, because investors can not generate a sufficient return from low - yielding bonds, they turn to stocks as their only alternative.

When bond yields rise, investors often start weighing whether stocks are the only game in town for return.

She relies on a database of 1,000 simulations of future returns to conclude that, 75 years from now, a Social Security trust fund portfolio that includes stocks will produce a healthy ratio of assets to benefits, while a trust fund consisting of only bonds will be completely exhausted.

Should low returns on bonds and stocks persist, that would only exacerbate this trend.

If the same person instead invested a little less each year (6 % of his income) in a portfolio weighted 80 % to higher - returning equities and 20 % to bonds, he would only have $ 469,000 at retirement.

These mutual funds have promised higher yields and better returns than bond - only funds, and for the most part they have delivered.

And with interest rates at all - time lows and stocks at all - time highs, there are many who expect that not only will a 60/40 portfolio deliver below average returns, but that bonds might not provide the protection they once did.

The founder of Vanguard Group thinks a conservative portfolio of bonds will only return about 3 percent a year over the next decade, and stocks won't do much better.

These examples only look at treasury bonds, but there are other types of bonds that are more volatile and can possibly lead to better returns (or at the very least more diversified returns).

The 1970s were the only decade where bonds did not deliver a positive return (real bond returns were significantly worse).

It also found that during the same period, the average fixed - income investor earned only a 6.08 % return per year, while the long - term Government Bond Index reaped 11.83 %.

So Europeans and Asians see U.S. companies pumping more and more dollars into their economies, not only to buy their exports in excess of providing them with goods and services in return, and not only to buy their companies and commanding heights of privatized public enterprises without giving them reciprocal rights to buy important U.S. companies (remember the U.S. turn - down of Chinas attempt to buy into the U.S. oil distribution business), and not only to buy foreign stocks, bonds and real estate.

Unfortunately, the only cure for low returns in bonds is higher interest rates.

Government bonds provided a real compounded return of only 1.6 % during 1900 - 2000, with substantial risk (standard deviation 10 %).

If you went into Treasury bonds, you were not only spared, you made a decent return of 5 - 6 % depending on the maturity.

Even though the yield - to - maturity for the remaining life of the bond is just 7 %, and the yield - to - maturity you bargained for when you bought the bond was only 10 %, the return you have earned over the first 10 years is an impressive 16.26 %!

Because of «Abenomics»» artificial demand for JPY Bonds has pushed down JPY Bond Yields, Aflac got only a 2.16 % return on its Japanese float — exactly half the return Aflac received on its USD float.

U.S. Corporate Bonds & Senior Loans: Only giving up -0.83 % for the month, the S&P / LSTA U.S. Leveraged Loan 100 Index stayed out of the fixed income fray and has returned a positive 1.99 %, year - to - date.

The two most recent bear markets, strong bond returns helped offset deep declines in equities, helping the balanced portfolio incur less than half of the drawdown of an equity - only portfolio.

The returns on bonds only look good with the benefit of hindsight and this will be true again the next time we get a stock market crash or prolonged bear market.

While this only goes back to 1999, it would still be insightful to compare these two indexes on a year by year and aggregate basis for total return and volatility to get a true sense of the difference that treasury bond duration makes.

Our own Near - Term Tax Free Fund (NEARX) saw its 21st straight year of positive returns in 2015, a rare accomplishment that has been achieved by only 39 out of 31,306 equity and fund bonds — around 0.12 percent — according to Morningstar data.

To return to our example of replacing a # 25,000 salary with passive income, if I invested mainly in shares and rental property and only diversified the portfolio into fixed income such as bonds in my final years of saving, I'd plan on investing around # 7,000 a year into shares for 25 years, assuming a pretty aggressive inflation - adjusted annual return of 7 %.

For testing, they assume: (1) a simple 60 % -40 % stocks - bonds portfolio; (2) bond returns are small compared to stock returns (so only the stock allocation requires rebalancing); and, (3) option settlement via share transfer, as for SPDR S&P 500 (SPY) as the stock / option positions.

Figure 2 shows that during past rate - hike cycles, muni bonds not only continued to generate positive performance over the entire course of the rate - hike cycle, but also managed to generate positive returns immediately after each rate hike.

Moreover, our impression is that equity valuations are actually only mildly less extreme «when you compare the returns on equities to the returns on safe assets like bonds.»

With fully two - thirds of its money invested in domestic and foreign stocks, private equity and «absolute return strategies» (i.e., hedge funds), the New York State pension fund has a risky asset allocation profile typical of its counterparts across the country — because chasing risk is its only hope of earning 7 percent a year in a market where the most secure long - term bonds yield barely 2 percent.

Unsecured bonds are called debentures; their interest payments and return of principal are guaranteed only by the credit of the issuing company.

The best performer in the recent downtrend has been the S&P Canada Collateralized Bond Index losing only -0.39 % of return MTD.

It's a perfectly respectable ultra-short bond fund, with negligible volatility and average returns, that only drew $ 30 million.

By rebalancing — in this case, selling some bonds and reinvesting the proceeds in stocks — the retiree would not only bring his portfolio back to its proper proportions, but also better position it to participate in the market's rebound the following year, 2009, when the Standard & Poor's 500 index surged to a near - 27 % gain vs. a more modest 6 % return for bonds.

This fund is most appropriate for investors who are looking for exposure to U.S. TIPS but also do not mind having inflation - linked bonds issued by emerging market countries, which offer higher rates of return when compared to ETFs investing only in U.S. TIPS.

Another thing that you learn from the text and Figure 3 is they make strange assumptions about bond returns, essentially no risk as far as I can tell (or that everyone can buy corporate bonds with no change in interest and no default risk and spend them only at maturity), and further use this to argue that the 4 % rule «should» hold only bonds, which of course is completely contrary to how the 4 % rule was derived in the first place.

Figure 2 shows that during past rate - hike cycles, muni bonds not only continued to generate positive performance over the entire course of the rate - hike cycle, but also managed to generate positive returns immediately after each rate hike.

Holding a globally diversified portfolio with 40 % bonds, for example, historically reduced risk by 41.64 % while increasing returns by 0.64 % per year over a Canadian stock - only portfolio.

That's why it pays to invest in bonds only during times when you must have steady returns, or when interest rates are unusually high.

The fund had only six equivalent positions: in the Vanguard Health Care ETF (VHT; average weight of 54.4 %), iShares Global Healthcare ETF (IXJ; 28 %), iShares 7 - 10 Year Treasury Bond ETF (IEF; 7.6 %; representing the fixed - income holdings), iShares MSCI Japan ETF (EWJ; 5.7 %), Vanguard Utilities ETF (VPU; 2.3 %; also representing fixed - income investments), and iShares North American Tech - Software ETF (IGV; 2 %; helping explain the remainder of the fund's returns).

If bonds can only deliver a 2 % return, then equities must return 12 % in order to produce an overall portfolio return of 8 %.

Ideally, returns of a liquid - alt fund should not only be uncorrelated with those of both stocks and bonds but also significantly positive over a long evaluation period.

Only time will tell but because of the impact bond holdings have on overall portfolio returns, its easy to see why we are at a crossroad.

GICs, government bonds and money market funds provide only paltry returns.

There are only two ways that a bond manager can deliver superior returns than a broad - market index.

The bond investment that was supposed to be a safe store of value gets cut by nearly 25 % if interest rates only just return to normal in 5 years!

However, because of this inherent safety, the average mortgage bond tends to yield a lower rate of return than traditional corporate bonds that are backed only by the corporation's promise and ability to pay.

The S&P U.S. Issued High Yield Corporate Bond Index has returned 0.08 % so far for May after having returned only 0.67 % for the month of April.

Here's the break - out, by fund inception date: Some observations: - Every fund listed (5 years or older) with current yields of 6 % or more, lost more than 20 % of its value in 2008, except three: PIMCO Income A PONAX, which lost only 6.0 %; TCW Total Return Bond I TGLMX, which lost only 6.2 % (in 1994); and First Eagle High Yield I FEHIX, which lost 15.8 %.

The only larger component of the aggregate index is the S&P / BGCantor U.S. Treasury Bond Index (38 % of the parent index), which has returned 0.62 % YTD, while losing 1.43 % MTD.