Investment Update: September 2022
AWM has diversified your investments beyond just traditional stocks and bonds. Introduction to the newest strategy in your portfolio (it’s not fixed income) Opportunities for other positions in your “diversified” sleeve “Don’t put all your eggs in one basket.” 2022 has been a good illustration of this saying for investors. Both stocks and bonds declined. Read more ➝
Views on Fixed Income: Fixed Income as Ingredient, Not Total Solution (Part Three)
Fixed income represents an ingredient, not a total solution, for conservative investors. Expensive valuations and shifting central bank policy might detract from the historical attractiveness of traditional fixed income. A mix of investments with income generation and reduced volatility potentially could help investors in the current environment. We believe fixed income is an expensive Read more ➝
Views on Fixed Income: Stocks, Bonds, and Inflation (Part Two)
Bond yields are even lower when adjusting for inflation Even if bonds decline due to higher interest rates, stocks in many cases can still rise. Investors need diversification regardless. Bond yields are not simply priced in a vacuum. Investors (usually) expect to collect some sort of coupon above the rate of inflation. They want to Read more ➝
Views on Fixed Income: Simple History in Pictures (Part One)
Bond yields have fallen across the board over the last 10 years (and beyond) Price inflation (rate of price increases for what consumers buy) has been fairly constant over the last decade Could bond yields have fallen too far too fast? It depends on inflation and the economy. Let’s take a walk down memory Read more ➝