Wednesday, November 4, 2026
Earnings season is underway, and investors are getting a closer look at how companies are managing rising costs and elevated interest rates. Corporate profits remain an important driver of stock prices, but even strong earnings may not be enough to satisfy investors when expectations are already high. Recent inflation reports have helped explain some of […]
When interest rates go up, investors often have the knee-jerk reaction to sell certain types of stock. The resulting sell-off can be disconcerting if you don’t understand what is happening. The yield on the 10-year Treasury drives much of the interest rate outlook. Over the last six months, the 10-year yield has moved from 4.25% […]
There’s something interesting happening in the stock market right now. Major indices have continued to show strength even as higher borrowing costs create challenges for businesses and consumers. Ordinarily, we would expect elevated interest rates to weigh on stock prices. Companies pay more to finance expansion, consumers become more cautious about large purchases, and investors […]
Interest rates have spiked higher over the last month. The 10-year Treasury yield increased by 12%, moving from 4.7% to 5.25%. When rates increase, investors sell off stocks they think will be hurt by higher rates. Real estate investment trust (REIT) share prices are one of the most affected asset classes. The Vanguard Real Estate […]
Oil prices have surged, Treasury yields have climbed, stocks have come under pressure, and mortgage rates are back above 7%. At the same time, the Federal Reserve is forcing investors to reconsider where interest rates could go next. It would be convenient if one of those things explained the market, but none do. In a […]
Generally accepted financial planning guidelines always recommend that a portion (typically 40%) of an investor’s portfolio be in bonds. Very few buy individual bonds, meaning this allocation will likely be in bond funds. There are some problems and risks to your wealth from a large allocation to a bond fund. First, a bond primer: A […]
I recently researched an energy company – Vitesse Energy LLC – whose business motto included the phrase “the velocity of capital compounding.” That idea caught my eye and applies to the power of compounding dividend or interest income. I like using the word “velocity” to indicate the speed at which gains can happen. By the […]
When the markets become volatile, as we have seen them do over the last couple of months and even more so with recent tariff announcements I am often asked about safe places to park cash and earn a reasonable interest rate. Recently, a new ETF was launched that provides an interesting alternative to money market […]
Recently, Goldman Sachs shocked investors with its analysts’ stock market forecast for the next ten years. Stock returns have roared for the last decade, and investors who count on continued low-teens annual returns could be severely disappointed. More importantly, if your retirement goals and plans rely on continued excellent stock returns, you may not be […]
When I sold bonds in the 1990s, using a bond ladder—or even laddering CDs—allowed investors to maximize their investment yields and retain flexibility and liquidity. With the yield curve starting to steepen and the future of interest rates unknown, employing the current version of a bond ladder strategy can add safety and income to your […]
