The Good News: Things
Aren't Getting Worse At An Increasing Rate
by Guy Baker
As we measure the state of the economy, there is little we can call good news. Maybe we can say, things aren’t getting worse at an increasing rate. But other than that, there is not much reason to think things are on the upswing. At least not yet
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Bonds Have Trumped Stocks, But Which Will Win In The Future?
The historic bear market of 2008 has shaken a foundational faith of many investors. It has long been believed that stocks offer the best returns over lengthy periods of time.
Instead, the latest statistics show that long-term U.S. government bonds have offered higher nominal returns than stocks over the last 20 years, 10 years, 5 years, and 1 year through June.
Some investors may be kicking themselves for . . . -READ MORE-
Be wary of annuities when rates are low
The market turmoil of 2008 and 2009 convinced some investors to yank their money out of a volatile stock market in favor of something more staid.
Insurance and investment salespeople have been touting fixed, tax-deferred annuities as alternatives to the stock market and to low savings rates offered at banks and money market funds.
Fixed annuities pay a specific interest rate each year and the interest accumulates tax-free until withdrawn or the annuity is surrendered.
-READ MORE-Investors Who Grow Impatient Shoot Themselves In The Foot
American investors, both professional and amateur, have become a cranky lot with little loyalty to the stocks and mutual funds they buy.
Back in the 1960s, the average holding period for a stock on the New York Stock Exchange was eight years. Today the average is just nine months.
Less Worry, Coping With Crisis, And More . . .
Affluent individuals are less worried about the economy than they were in 2008, a new survey shows.
The reduction in concern may be a plus for the economy, said Bob Shullman, whose firm, Ipsos Mendelshohn, conducted the survey.
The percentage of households with $100,000 or more in annual income who worried about the economy declined in April to 46 percent from 60 percent in December.
Active Mutual Fund Managers Can’t Seem To Beat The Indexes
Active mutual fund managers may tell you their expense is justified by market-beating results, but the data contradicts them, says Standard & Poor’s.
S&P does a regular study of mutual fund performance vs. passive indexes and regularly finds that most active fund managers can’t beat their respective indexes. . .-READ MORE-