Investors Seeking Yield Face Unavoidable Risks: In Or Out Of The Market

By Tom Lydon: After the multi-decade long rally in the Treasuries market, yields are now hovering around historic low rates. If you are wary of a potential rising rate environment, short duration and inverse Treasury exchange traded funds could help mitigate the risks in a fixed-income portfolio.

Philip Mause submits: Introduction

By Ploutos:In past articles, I have highlighted momentum strategies across asset classes that have produced excess returns per risk borne, or alpha, over long-time intervals.

David I. Templeton submits: One thing that seems almost certain is the next move in interest rates will be a move higher. What will a move higher in interest rates mean for stock and bond investors? It should be noted that longer term market rates have already been trending higher over the past twelve months. The 30-year US Treasury rate has increased from around 3.5% a year ago, to 4.6% today.

Long-term interest rates are now unsustainably low, implying bubbles in the prices of bonds and other securities. When interest rates rise, as they surely will, the bubbles will burst, the prices of those securities will fall, and anyone holding them will be hurt.

By Philip Mause: This series is designed to explore various strategies for generating yield in the equity market, which seems to be a topic of increasing interest to investors because of the decreasing interest paid on fixed income investments.

By Ploutos:In January, I began authoring a monthly series on momentum strategies within the fixed income universe. In past articles, I have highlighted momentum strategies across asset classes that have produced excess returns per risk borne, or alpha, over long-time intervals.

MyPlanIQ submits:Last week painted a mixed picture for the fixed income market, with high yields and international inflation protected bonds again claiming the top two spots in our trend table. Long term government bonds and munis lagged the broader market. We think two major themes—durational risks of long term government bonds, inflation pressures in emerging markets—are in focus and would offer investors insights on how to navigate the bond market.