Should You Buy Series I Bonds? What Investors Should Know Before Buying

July 28, 2022 A sleepy area of the bond market known as Series I Bonds has exploded in popularity this year, catching the attention of investors with its eye-popping 9.62% current yield. In a year in which most asset classes have delivered negative returns, a stable, predictable government guaranteed savings bond may seem appealing. And … Continued

Liquidity – That Giant Sloshing Sound

In the decade since the severe credit crisis of 2008, the Federal Reserve Bank has pumped over three trillion dollars of liquidity into the markets by purchasing Treasuries, mortgage bonds and other assets. The Fed has also kept interest rates relatively low, despite its recent short-term rate hikes and its initial efforts to gradually shrink … Continued

In Defense of Bond ETFs

Liquidity, or the lack of it, is what everyone seems to be talking about relative to the bond market these days. What does it mean and why should we care? Don’t we just buy and hold bonds until they mature? Not so much anymore. A security is perceived to be liquid if quantities, large and … Continued

Cash Flow Management: Are Annuities the Answer?

Over the last seven years, many investors have been hard pressed to find a single investment option with a relatively safe and consistent return.   The long running backdrop of low interest rates, the real estate market slide of 2007, and Great Recession of 2009 have left conservative investors anxious for certainty and security.  The … Continued

The Improving State of the State

“I busted a mirror and got seven years bad luck, but my lawyer thinks he can get me five.” – Steven Wright Seven years ago California was facing a severe budget crisis. The state’s expenses exceeded revenues, creating an unsustainable path for the state’s finances, which ultimately unwound with the Great Recession in 2008. By … Continued

Sound the Alarm… Stay the Course

The media is overly focused on propagating a falsehood, specifically, that bonds are now riskier than stocks.  This is sensational financial journalism at best and, at its worst, potentially retirement damaging advice. It is a universally accepted truth that the 30-year plus tail wind to bond performance, caused by falling interest rates, is now behind … Continued