Bonds Shine with Fed’s “Higher for Longer” Call

As the Federal Reserve continues to send the message that rate of interest will remain elevated well into 2024, bond yields are the highest they have actually remained in more than 15 years. In this episode, host Mike Townsend invites Kathy Jones, chief fixed income strategist at the Center for Financial Research, to get her perspective on how bond financiers can make the most of what some are calling a once-in-a-generation opportunity. They discuss specific bonds vs. bond funds, corporate bonds, community bonds, and Treasury Inflation-Protected Securities (SUGGESTIONS). Kathy provides her perspective on the most recent Fed action and how the Fed might react if a federal government shutdown curtails its access to essential economic information in the coming weeks. She likewise uses her factors to consider for how to make bonds part of a well-diversified portfolio, whether you are a long-time set earnings financier or a newcomer to the world of bond investing..

In addition, Mike provides the latest on the scramble on Capitol Hill to prevent a government shutdown and takes a look at a few of the ramifications of a shutdown for investors. He also has a look at a new SEC guideline that seeks to help financiers comprehend what they are managing needing mutual fund and exchange-traded fund names better line up with their objectives and methods.

WashingtonWise is an original podcast for financiers from Charles (). For more on the series, check out .com/ WashingtonWise ().

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All expressions of viewpoint are subject to change without notification in reaction to shifting market conditions. Data included herein from third-party suppliers is obtained from what are thought about trustworthy sources. However, its accuracy, efficiency, or reliability can not be ensured.

Examples supplied are for illustrative functions only and not meant to be reflective of results you can expect to attain.

Set earnings securities go through increased loss of principal during periods of rising rates of interest. Fixed earnings financial investments are subject to various other dangers including modifications in credit quality, market assessments, liquidity, prepayments, early redemption, corporate events, tax implications and other factors.

Lower rated securities undergo greater credit threat, default risk, and liquidity threat.

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Investing involves dangers including loss of principal.

Diversity and asset allocation strategies do not guarantee a revenue and do not safeguard versus losses in decreasing markets.

Tax-exempt bonds are not always a suitable financial investment for all persons. Info related to a security's tax-exempt status (federal and in-state) is obtained from third-parties and Schwab does not ensure its accuracy. Tax-exempt income might go through the Alternative Minimum Tax (AMT). Capital gratitude from bond funds and affordable bonds may undergo state or regional taxes. Capital gains are not exempt from federal .

Lower-rated securities undergo greater credit risk, default threat, and liquidity risk.

Treasury Inflation Protected Securities (SUGGESTIONS) are inflation connected securities provided by the United States Government whose primary value is adjusted periodically in accordance with the rise and fall in the inflation rate. Hence, the dividend amount payable is likewise affected by variations in the inflation rate, as it is based upon the primary value of the bond. It might fluctuate up or down. Repayment at maturity is ensured by the US Government and may be adjusted for inflation to become the higher of the.
initial face quantity at issuance or that face quantity plus an adjustment for inflation …

Bonds Shine with Fed's "Higher for Longer" Call

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