The website ThinkAdvisor features the brief, "Advisors Make the Case for Short-​Term CDs, Bonds and Treasury Bills." Subtitled, "All three investments, held to maturity, are now available with yields above 2% and little risk," the piece tells us, "The rise in interest rates is depressing bond prices but also creating opportunities for investors who have been starving for yield and worried about a stock market correction. They can now collect more yield in a riskless 6-​month Treasury bill than in many dividend paying stocks. The 6-​month T-​bill was yielding 2.​08% as of Friday'​s close, well above the 1.​91% dividend yield of the S&​P 500, which has gained just 1.​47% year to date. And many one-​year CDs are paying between 2.​15% and 2.​25%, according to Bankrate.​com." They quote Leon LaBrecque, managing partner and CEO of LJPR Financial Advisors, "We have been advising clients to get surplus cash into CDs, since we are seeing CD rates north of 2% on 18- to 24-​month CDs.... On our individual bond portfolios, we are staying short as well." The article continues, "​During periods of low inflation, like the last nine post-​recession years, bonds have served as a hedge against volatility in the stock market. But now that inflation is rising, the '​balance of risk is changing,' says `​Mihir P. Worah, chief investment officer, Asset Allocation and Real Return, at Pimco.... 'Bonds will not help to hedge equity holdings.... In the absence of a recession there is a negative correlation between stocks and bonds.'"

Your Name:
Your Email:
Recipient Email(s):

Use a comma or a semicolon to separate

Please retype symbols from the image:

Optional Message

Daily Link Archive