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Despite talk of an imminent sharp rise in interest rates, the yield on the 10-year Treasury note is back below 2%. This is more evidence that the much vaunted “Great Rotation” out of bonds has yet to occur. (Otherwise, bond prices would have fallen and yields would have gone up.)

The great rotation was always more myth than reality. In fact, the fuel for the equity rally has been coming out of cash, not out of bonds being sold. We had more evidence of that last week. Fund flows for the week ending March 20th were up another $2.6 billion for stocks, a slowdown from previous weeks, while bond flows were substantially higher, up $3.7 billion on the week, according to BlackRock data.

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The New Fixed Income World

by on March 25, 2013 | Updated March 26, 2013

In previous blog posts, I wrote about how the economic and investment world has evolved over the past five years. Now, as the latest Federal Reserve meeting finishes up, I wanted to delve a little more into how the fixed income landscape in particular has changed, thanks in a big part to the actions of the Fed.

Here are 3 reasons why it’s not your father’s (or mother’s) fixed income landscape anymore. [click to continue…]

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Say Hello To All-Time Highs

by on March 9, 2013

Stocks kicked off the trading week on a positive note Monday morning, and buying euphoria stuck around in the days following as upbeat economic data stole the headlines. Improvements in home prices and better-than-expected employment data took center stage, although Friday’s numbers surprisingly failed to ignite a bigger rally; the latest nonfarm payrolls figure showed 236,000 jobs […]

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Stocks Brace For Rate Decisions

by on March 4, 2013

Last week gave the bulls a scare as profit taking pressures swiftly knocked down major indexes at the start of the week, however, buyers poured in and helped the market regain its footing by the closing bell on Friday. After failing to post fresh highs last week and enduring volatile trading, U.S. equity indexes could face stiff […]

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As the U.S. market slowly wanders towards the road to recovery, many investors who had avoided the short-term effects of the recession are now left looking for a long-term solution for slow American economic growth without risking everything. One option is to look through emerging market bonds, which often offer growth potential unparalleled in the United States […]

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Broad Correction In Sight

by on February 23, 2013

The bears finally made an appearance on Wall Street, although it was fairly short-lived. Profit taking pressures permeated the marketplace on Wednesday as investors fretted over worse-than-expected housing starts data while mixed FOMC minutes further added to the cloud of uncertainty for the day. Nonetheless, the bulls returned with great vigor on Friday and regained […]

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Bulls On Parade

by on February 19, 2013 | Updated February 22, 2013

Investors returned to Wall Street in a buying mood Tuesday morning following the long weekend in observance of President’s Day. European markets kicked off the week on a sour note after elections in Italy sent waves of worry across the currency bloc, however, this wasn’t enough to spook the bulls from returning to the home […]

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Individual emerging market bonds are difficult to purchase and come with significant risk. For this reason, investors are turning to ETFs to gain broad exposure to this market. ETFs don’t remove currency, interest rate, and other risk factors inherent to international bond investing, but the diversification that an ETF offers mitigates these risks and can […]

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As the U.S. market slowly wanders towards the road to recovery, many investors who had avoided the short term effects of the recession are now left scratching their heads, looking for a long term solution for slow American economic growth without risking everything. One option is to look through emerging market bonds, which often offer […]

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The new year has been quite kind to equity markets, however, savvy investors have been reluctant to get too comfortable, given the largely uncertain global economic outlook. With 2012 in the history books, it’s that time of year again to peer into the future and devise strategies suited for the unpredictable road ahead. Financial behemoth […]

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This was the year of bond ETF growth, with massive inflows into this asset class over the last few months. After the financial crisis, investors have flocked to this consistent and often high-yielding asset class. In the last month some have backed off as worries of the fiscal cliff spill over into investment practices, but […]

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Yield, it seems, continues to be on the minds of investors everywhere. With interest rates continuing to hug record lows, finding meaningful current returns has become a continuous struggles for a wide range of investors. Many asset classes that traditionally supply meaningful yields have dried up, sending investors on a quest for alternatives that can […]

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