When Will the Federal Reserve Raise Interest Rates?

As the economy improves and the Federal Reserve (“Fed”) ends its quantitative easing program in October the next question for investors is when will the Fed raise rates? Which Factors Are Most Important to Raise Interest Rates? The Fed will…

Solar Panels: Purchase vs. Lease

Residential solar panel installations have grown dramatically over the last several years.  Where sunshine is plentiful, investing in solar panels is likely to produce at least a modest return on the investment. In other places, some homeowners choose to have…

Emerging Markets Outperformance?

In our recent mailing about the CAPE formula, we discussed how we use this valuation measure in our investment outlook strategy.  The graph below (Graph 1) demonstrates that when an asset class is undervalued there are high correlations with stronger…

Federal Reserve Taper Decision

The Federal Reserve (“Fed”) recently announced in its January 2014 meeting that it will continue to reduce (aka taper) its bond buying from $75 billion to $65 billion per month in 2014.  The Fed has seven remaining meetings in 2014…

The Reality of Target-Date Funds

Older workers who are using target-date funds as the primary vehicle for saving in their 401ks are facing a difficult reality. An article in Bloomberg’s Businessweek, titled Target-Date Funds’ Risky Balancing Act, discusses the problem that the current low interest…

Why you need a Financial Plan

Do you ever ask yourself, “At what age can I retire?” Or, “Am I saving enough to help pay for my child’s college education or buy a new home?” These are financial goals and the best way to answer these…

Buy High, Sell Low

Warran Buffett once said, “the investor of today does not profit from yesterday’s growth.”  This is never more evident than with individual investor performance in mutual funds. Morningstar, the mutual fund research company, annually calculates the difference between mutual fund…

Liability Relative Investing to Combat Inflation

For many people, evaluating their financial situation means just reviewing investment performance against the Dow Jones Industrial Average. Now, Morningstar has produced new research they call Gamma, which highlights the value of smart financial planning. This post will summarize the last of the five strategies, liability…

10-Year Treasury Yield

When Will Interest Rates Rise?

That is a question asked by many investors today. One way to analyze this question is look at previous situations in US history when bond yields reached levels seen today. As noted in the chart, the previous treasury yield low…