Sentences with phrase «returns in a rising interest rate environment»

I showed him the graph below which shows lower than average TOTAL returns in a rising interest rate environment and he checked his long - term data and found that bond holders between 1953 and 1980 had actually lost money.

Not exact matches

A number of factors — such as rising US interest rates, the recurrence of big fluctuations in global currencies, and the widening dispersion of equity returns across sectors and regions — may have helped to create an increasingly conducive environment for hedge - fund strategies, which have seen a positive turnaround in performance in recent quarters.

In a rising interest rate environment, the risk that investors have in owning all bond mutual funds and / or bond ETFs for their bond allocation is that both vehicles are managed on a relative return basis versus a benchmark indeIn a rising interest rate environment, the risk that investors have in owning all bond mutual funds and / or bond ETFs for their bond allocation is that both vehicles are managed on a relative return basis versus a benchmark indein owning all bond mutual funds and / or bond ETFs for their bond allocation is that both vehicles are managed on a relative return basis versus a benchmark index.

Indeed, shorter - duration, tax - free munis have a history of delivering positive returns even during economic downturns and in environments of rising and lowering interest rates.

This means the 52bp pick up in yield that one gets today would result in a lower total return later, as bond prices would decrease in a rising interest rate environment.

I have the majority of my investments in index funds at Vanguard in a taxable account, but don't like bond funds paying next to nothing in a rising interest rate environment, though their low correlation to stocks would be nice, return free risk though.

The variability of returns is expected to be greater than the index as the intent of the portfolio is to provide both protection in rising interest rate environments as well as ultimately provide a higher level of return through both income and capital appreciation.

A characteristic of CMOs and other callable or prepayable securities that causes investors to have their principal returned sooner than expected in a declining interest rate environment, and later than expected in a rising interest rate environment.

According to The Four Pillars of Investing, investors should keep their bond terms short because long - term bonds offer little extra return for taking on a higher interest - rate risk and long - term bonds have a larger decrease in price in a rising interest rate environment.