![Jill on Money [ Archive]](http://images.squarespace-cdn.com/content/v1/59efbd48d7bdce7ee2a7d0c4/1510342916024-TI455WZNZ88VUH2XYCA6/JOM+Blue+and+White.png?format=1500w)
Because I'm concerned about bond yields, I moved my $1.3 million bond allocation to cash. Good move or did I make a mistake?
Have a money question? Email us, ask jill [at] jill on money dot com.
Please leave us a rating or review in Apple Podcasts.
"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.
It's funny, last spring I didn't hear anybody complaining about the bond portion of their portfolios. Yet now we're starting to hear from people looking for better options than bonds. Things that make you go hmmm.
Have a money question? Email me here.
Please leave us a rating or review in Apple Podcasts.
"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.
Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.
What’s a portfolio without a bond position? It’s incomplete and potentially riskier than necessary.
We field so many questions about your portfolios and asset allocation and while stocks may seem sexier because of their upside potential, you always hear me stress that everyone needs exposure to bonds as well.
We rarely dive into bonds in great detail, what they are, how they work, and why you absolutely need them, which is why I thought it would be time for a little Bond Boot Camp. Joining us on the podcast this weekend is Kathy Jones, Senior VP and Chief Fixed Income Strategist at Schwab.
Have a money question? Email me here.
Please leave us a rating or review in Apple Podcasts.
"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.
Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.
What’s a portfolio without a bond position? It’s incomplete and potentially riskier than necessary.
We field so many questions about your portfolios and asset allocation and while stocks may seem sexier because of their upside potential, you always hear me stress that everyone needs exposure to bonds as well.
We rarely dive into bonds in great detail, what they are, how they work, and why you absolutely need them, which is why I thought it would be time for a little Bond Boot Camp. Joining us on the podcast this weekend is Kathy Jones, Senior VP and Chief Fixed Income Strategist at Schwab.
Have a money question? Email me here.
Please leave us a rating or review in Apple Podcasts.
"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.
A bond position is an essential component of an overall portfolio. But how does one start implementing bonds? That's the discussion with Karen from Ohio.
Have a money question? Email me here.
Please leave us a rating or review in Apple Podcasts.
Connect with me at these places for all my content:
https://www.jillonmoney.com/https://twitter.com/jillonmoney
https://www.facebook.com/JillonMoney https://www.instagram.com/jillonmoney/
https://www.youtube.com/c/JillSchlesinger
https://www.linkedin.com/in/jillonmoney/ https://www.stitcher.com/podcast/jill-on-moneyhttps://apple.co/2pmVi50
"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.
Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.
Mary from Colorado starts off the latest show as she’s trying to figure out the best way to start implementing a bond position. Familiar with buying stocks and mutual funds, Mary is finding the bond market to be rather confusing and mysterious, hence the call to the show.
Keeping the economy strong will require addressing two distinct but related problems. Steadily rising federal debt makes it harder to grow our economy, boost our living standards, respond to wars or recessions, address social needs, and maintain our role as a global leader. At the same time, we have let critical investments lag and left many people behind even as overall prosperity has grown.
Our latest guest in hour two, William Gale, is a leading authority on how federal tax and budget policy affects the economy, and in his latest book, Fiscal Therapy: Curing America's Debt Addiction and Investing in the Future, Gale provides a direct discussion of the challenges posed by the imbalances between spending and revenue.
America is facing a gradual decline as debt accumulates and delay raises the costs of action. But there is hope: fiscal responsibility aligns with both conservative and liberal goals and citizens of all stripes can support the notion of making life better for our children and grandchildren.
We face significant fiscal challenges but, if we are wise enough to seize our opportunities, perhaps we can strengthen our economy, increase opportunity, reduce inequality, and build better lives for our children and grandchildren. We do not have to kill popular programs or starve government.
As the book discusses, one main goal of fiscal reform is to maintain the vital functions that government provides. To act responsibly, pay for the government we want, and shape that government in ways that serve us best.
Have a money question? Email me here.
Please leave us a rating or review in Apple Podcasts.
Connect with me at these places for all my content:
https://www.jillonmoney.com/https://twitter.com/jillonmoney
https://www.facebook.com/JillonMoney https://www.instagram.com/jillonmoney/
https://www.youtube.com/c/JillSchlesinger
https://www.linkedin.com/in/jillonmoney/ https://www.stitcher.com/podcast/jill-on-moneyhttps://apple.co/2pmVi50
"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.
People love the idea of seeing their investments go up and up and up. But what about when things go down? Where’s the protection? That’s why bonds need to be a part of the overall allocation. That’s the discussion as we kick off the latest show with DJ from Texas. A great call and important lessons to be learned.
Hour two was more from the endless pile of emails and a surprise guest to help break down tax season.
Have a money question? Email me here.
Connect with me at these places for all my content:
https://twitter.com/jillonmoney
https://www.facebook.com/JillonMoney
https://www.instagram.com/jillonmoney/
https://www.linkedin.com/in/jillonmoney/
http://www.stitcher.com/podcast/jill-...
"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.
The last time the U.S. unemployment rate was this low, Peter, Paul and Mary’s “Leaving on a Jet Plane” was the number one song, “Hello Dolly” was the big holiday movie hit and war continued to rage in Vietnam. In December 1969, the unemployment rate was 3.7 percent and not until this September, has it been as low since.
A new year, a new website and the questions are pouring in!
First up this week was Tom from New Hampshire who is looking to get his financial life in order. It wasn't too long ago that it went a bit off track but with a new year, Tom has some benchmarks he's looking to meet and wanted to run them by us. Next up was Erin in New Mexico who is going through a divorce and wants to make sure she's properly protecting herself. We finished up hour one by answering a handful of email questions.
On to hour two...
What’s a portfolio without a bond position? It’s incomplete and potentially riskier than necessary.
We field so many questions about your portfolios and asset allocation and while stocks may seem sexier because of their upside potential, you always hear me stress that everyone needs exposure to bonds as well.
We rarely dive into bonds in great detail--what they are, how they work, and why you absolutely need them, which is why I thought it would be time for a little Bond Boot Camp. Our leader for this mission on today’s show is Justin Land, aka the ultimate bond guru.
Justin is the Director of Tax Exempt Portfolio Management at Wasmer, Schroeder & Company, an investment advisory firm based in Naples, FL.
In the current environment where it seems like the Dow is setting records on a daily basis, there’s probably a lot of people out there who want to be 100% invested in stocks. But what happens when the Bull turns into a Bear -- what will help protect you then?
What if I told you that by owning a bond position, you’d only miss out on a little of the upside, but in return, your downside would look far better when that eventual correction occurs.
And make no mistake...it’s coming. It’s a matter of when, not if.
After hearing this chat with the bond guru, if you don’t already, I hope you add some to your portfolio and start out 2018 on the right financial foot!
Have a finance related question? Email us here or call 855-411-JILL.
We love feedback so please subscribe and leave us a rating or review in iTunes!
Connect with me at these places for all my content:
https://twitter.com/jillonmoney
https://www.facebook.com/JillonMoney
https://www.instagram.com/jillonmoney/
https://www.linkedin.com/in/jillonmoney/
Seven years ago, the recession officially ended. According to the National Bureau of Economic Research’s (NBER) Business Cycle Dating Committee, the organization responsible for declaring the beginning and end of U.S. expansions and contractions, June 2009 was the nadir of the worst recession since the Great Depression. Yes, employment bottomed out six months after the official end date, but that NBER says that is to be expected, because a recession “is a period of diminishing activity rather than diminished activity.” In other words, although the economy was still weak after June 2009, with lingering high unemployment, it had expanded considerably from its trough 15 months earlier. Where does that leave us today? The U.S. has seen a sluggish recovery, but the economy is far better off than it was seven years ago, by almost every objective metric. That said, a seven year expansion seems ripe for a breather, which is why so many are worried about the next recession. Adding to the concern was a report last week from the World Bank, which downgraded global growth estimates. “Overall growth remains below potential” and “looking ahead, the prospects of global growth remain muted.”
As expected, the commodity exporters have been hit particularly hard, but even advanced economies are stymied by sluggish growth. U.S. GDP is likely to be about 2 to 2.2 percent this year, consistent with the pace experienced over the past few years and the last few jobs reports have shown deceleration.
Amid this environment, it’s hard to see how the Federal Reserve could possibly raise interest rates when it meets this week. Although many central bankers went on a speaking junket in May, telling us that the U.S. economy had shown enough progress that a rate hike would be appropriate in the “coming months,” but the recent jobs data, combined with the dour World Bank assessment, makes it nearly impossible for the Fed to budge this week.
Instead, it’s back to parsing the Fed’s accompanying statement, the updated FOMC projections and Chair Janet Yellen’s press conference, for any signals of when the next rate hike might come. The answer, according to Capital Economics, “depends on whether the weakness in payroll employment in not just May but April too was a temporary blip or the start of a more serious downturn.”
If hiring picks up and the U.K. votes to remain within the European Union on June 23rd, the next Fed meeting at the end of July could be a possibility, but it would be a long shot. The more likely possibility would be the September meeting. If not September, it’s hard to fathom Fed action in November, just days before the presidential election. Unless there is a big uptick in economic activity, the last policy of the year on December 13 and 14, the one-year anniversary of the first rate hike of this cycle, may be the first and only Fed rate increase of 2016.
MARKETS: As U.S. indexes flirted with all-time record levels, the real action was in the bond market. The yield of the 10-year U.S. treasury tumbled to 1.639%, the lowest close since May 2013. Additionally, yields of comparable bonds in Germany and Japan, fell to all time lows, as investors bet on the continuation of sagging growth and low inflation and found solace in the overall safety of the bond market.
THE WEEK AHEAD:
Mon 6/13:
Tues 6/14:
FOMC Meeting Begins
6:00 NFIB Small Business Optimism
8:30 Retail Sales
8:30 Import/Export Prices
10:00 Business Inventories
Weds 6/15:
8:30 PPI
8:30 Empire State Mfg Survey
9:15 Industrial Production
2:00 FOMC Decision
2:00 FOMC Economic Projections
2:30 Janet Yellen Press Conference
Thursday 6/16:
8:30 CPI
8:30 Philly Fed Business Outlook
10:00 Housing Market Index
Friday 6/17:
8:30 Housing Starts
