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☆ Now is the time to buy longer-dated bonds as 10-year Treasury yields push near 2007 highs, Schwab says
▼ + stars: | 2023-08-22 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

With 10-year Treasury yields at their highest since shortly before the financial crisis, it's a good time to add duration to your fixed income portfolio, according to Charles Schwab fixed income strategist Cooper Howard. "If I were a betting man, I think the odds favor moving lower rather than higher," Howard said. Even if there is more upside in yields ahead, Howard still thinks the risk/reward looks attractive on longer-term bonds right now. US10Y YTD mountain US 10-year Treasury Where to add duration depends on your risk tolerance, according to Howard. "This is why we still maintain a favorable view toward extending duration and view the 10-year Treasury yields above 4% as an opportunity to add duration exposure," Alvarado wrote.

Persons: Charles Schwab, Cooper Howard, Howard, Jerome Powell, Wells Fargo, Luis Alvarado, He's, Alvarado, Michael Bloom Organizations: Federal, Investors, Treasury, Bloomberg Municipal Bond Index, Bloomberg U.S, Corporate, Treasury Bond Locations: Jackson Hole , Wyoming

☆ The tried and true 60/40 portfolio is making a comeback this year after cratering in 2022
▼ + stars: | 2023-08-17 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The balanced portfolio — reported by many to have died in 2022 — is experiencing a revival. The iShares Core Growth Allocation ETF (AOR) that mimics the strategy lost 15.6% in 2022, including reinvested dividends. Investors sitting tight were rewarded, however, as 2023's run-up in stocks helped lift the 60/40 model. "And thanks to higher interest rates, investors are getting much higher compensation for taking interest rate risk compared to 2021-2022." A 60/40 portfolio isn't right for all investors and their situations, but it does create a foundation for sound investments, said Preston Cherry, CFP and founder of Concurrent Financial Planning.

Persons: —, Seema Shah, Ryan Salah, Salah, US6M, Preston Cherry, bode, Cherry Organizations: Asset Management, Capital Financial Partners, Federal, CFP, CNBC

REUTERS/Thomas Peter/File photoBEIJING, Aug 13 (Reuters) - China's State Council issued guidelines on Sunday that it said would further optimize the country's foreign investment environment and attract more foreign investment. The State Council said in a document containing 24 guidelines that authorities should increase protection of the rights and interests of foreign investors, including strengthening enforcement of intellectual property rights. The document also announced guidelines to increase fiscal support and tax incentives for foreign-invested enterprises, such as temporarily exempting withholding income tax for foreign investors' reinvestment of their profits into China. The State Council said it would explore a "convenient and secure management mechanism" for cross-border data flows. Reporting by Andrew Hayley and Ethan Wang; Editing by Andrew Heavens and Bernadette BaumOur Standards: The Thomson Reuters Trust Principles.

Persons: Thomas Peter, Andrew Hayley, Ethan Wang, Andrew Heavens, Bernadette Baum Organizations: National People's Congress, REUTERS, State, The State Council, Thomson Locations: Beijing, China, BEIJING

☆ A 27-year-old personal finance creator breaks down the investment portfolios he's using to reach $2 million in 8 years — and shares the account types and categories of stocks he believes will accelera
▼ + stars: | 2023-08-03 | by ( Laila Maidan | Read More | Read Less | ) www.businessinsider.com time to read: +8 min

He's using a regular brokerage account and a solo 401(k) with pre- and after-tax advantages. Late last year, he decided he wanted to build a retirement portfolio worth $2 million that he could track and others could follow along. To date, he has $47,400 in a brokerage account and $72,774 in a retirement account, according to records viewed by Insider. This account has four sections: dividend stocks, technology stocks, risky stocks, and the S&P 500. These stocks account for 35% or about $17,000 in this account.

Persons: Austin Hankwitz, Hankwitz, Roth, I've, Crocs, doesn't Organizations: Lowe's Companies, Apple, Microsoft, Google, Palo Alto Networks, Costco, Vanguard Locations: Wall, Silicon, TikTok

☆ Insurer AIG profit beats estimates on gains in life and retirement unit
▼ + stars: | 2023-08-01 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Brendan McDermid/File PhotoAug 1 (Reuters) - American International Group (AIG.N) exceeded second-quarter profit expectations on Tuesday, driven by growth at its life and retirement unit and lower-than-expected catastrophe losses in what was a very expensive quarter for the industry. AIG, one of the world's biggest commercial insurers, said net premiums written in its general insurance arm for the quarter ended June grew 10% to $7.5 billion. AIG's life and retirement unit saw a 42% jump in premiums and deposits, partly helped by record sales in fixed index annuities. AIG's general insurance accident year combined ratio was 88%, compared with 88.5%, a year earlier. The metric excludes catastrophe losses and a ratio below 100 signifies that the insurer earns more from premiums than it pays out in claims.

Persons: Brendan McDermid, Mawar, Gallagher, Noor Zainab Hussain Organizations: AIG, REUTERS, American International, Companies, Thomson Locations: New, New York, Guam, United States, Bengaluru

☆ Heineken’s profit hit by drop in beer sales in Asia
▼ + stars: | 2023-07-31 | by ( Michelle Toh | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —People in Asia aren’t guzzling as much beer as they used to. Best known for its eponymous beer label, Heineken is home to more than 300 brands, including Tiger beer, Amstel Lager and Strongbow cider. Heineken branded beer did continue to see growth in the first half, both overall and within Asia Pacific. The brewer also blamed a drop in premium beer sales on a decline in Russia, a market the company has said it’s trying to exit. Heineken now expects “stable to mid-single-digit” growth in operating profit for the full year, compared with the “mid- to high-single-digit” growth it outlined in April.

Persons: Dolf van den Brink, Strongbow, ” Heineken, Vladimir Putin’s, Heineken, “ Organizations: Hong Kong CNN —, Asia aren’t, Heineken, Asia Pacific, Lager, Yale, CNN Locations: Hong Kong, Asia, Dutch, Asia Pacific, Vietnam, Korean, Nigeria, Amsterdam, Russia, Ukraine

☆ Treasury bills are still paying above 5%. Here's what to know before buying
▼ + stars: | 2023-07-27 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

"You don't really know truly what the rate is going to be until the auction hits," Keil said. How to buy T-bills through TreasuryDirect 1. Log in to your TreasuryDirect account. The benefit of brokerage accountsOne way to avoid liquidity issues is by purchasing T-bills through your brokerage account, rather than using TreasuryDirect. Keil said the "biggest benefit" of using a brokerage account is instant access to T-bills and immediately knowing your yield to maturity.

Persons: Treasurys, you'll, Keil, you've, Goldman Sachs Organizations: Getty, U.S . Department of, Treasury Locations: TreasuryDirect

☆ The Fed’s expected rate hike is about to sweeten yields on these investments
▼ + stars: | 2023-07-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The Federal Reserve is widely expected to boost interest rates by another quarter percentage point Wednesday afternoon – and that's terrific news for fixed income investors hoping to grab a little more yield. Since March 2022, the central bank has raised rates 10 times – with July's expected hike marking the 11 th increase – to cool inflation. Consider that during the week of March 11, 2022, the rate on the 2-year Treasury note was 1.75%, according to Refinitiv. Investors who wish to squeeze a little more interest income from their cash holdings have opted for Treasury bills, with the 6-month bill yielding 5.5%. By buying multiple notes of different maturities, investors can "ladder" these Treasurys and reinvest the proceeds from maturing bonds into longer-dated issues.

Persons: Greg McBride, maturities, tradeoffs, McBride, SLM —, Sallie Mae —, Nick Wells Organizations: Federal Reserve, Investors, Treasury, Bank of Locations: Bank of Indiana, Treasurys

☆ Here are the only 4 global stocks to raise dividends by more than 10% for the past 15 years
▼ + stars: | 2023-07-25 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

Among the stocks screened by CNBC Pro, the 98-year-old firm offered the highest dividend yield at 3.3%. Dividend yield is calculated as the dividend per share divided by the share price. The dividend yield can go up if the share price drops, and conversely, the yield can drop if the share price goes up. The stock has risen 340% in price returns, which strips out dividend payments, over the past 15 years. If the stock price also appreciates, the total return for the investor (capital gains plus dividends) would be even higher.

Persons: Japan — Organizations: CNBC Pro, Atrion Corporation, Kerry Group Locations: Brussels, Africa, Japan

☆ Here are Thursday's biggest analyst calls: Tesla, Netflix, Chevron, Alphabet, Apple, Nvidia, IBM and more
▼ + stars: | 2023-07-20 | by ( Michael Bloom | ) www.cnbc.com time to read: +6 min

Morgan Stanley reiterates Tesla as equal weight Morgan Stanley said it's standing by its equal-weight rating on Tesla after its earnings report Wednesday. Morgan Stanley upgrades Anheuser-Busch InBev to overweight from equal weight Morgan Stanley said the beer giant's valuation is attractive right now. Morgan Stanley reiterates Microsoft as overweight Morgan Stanley said the company is a top pick heading into earnings next week. Bank of America reiterates Alphabet as buy Bank of America said it's bullish on the stock heading into earnings next week. Bank of America reiterates IBM as buy Bank of America said it's standing by its buy rating on the artificial intelligence beneficiary after its earnings report Wednesday. "

Persons: it's, Morgan Stanley, Tesla, Bud, Wolfe, NVDA, Estée Lauder, Skyworks, McDonald's, Wells, Wells Fargo, it's bullish, Goldman Sachs, ServiceNow Organizations: Credit Suisse, Apple, Suisse, Vision, Tesla, Anheuser, Busch InBev, RBC, Nvidia, Barclays, UBS, Chevron, Bank of America, Netflix, Deutsche Bank downgrades Avis Budget, Deutsche Bank, Avis Budget, Walmart, " Bank of America, IBM, Citi Locations: underperform, China

☆ Fed banking regulator warns A.I. could lead to illegal lending practices like excluding minorities
▼ + stars: | 2023-07-18 | by ( Jeff Cox | ) www.cnbc.com time to read: +1 min

Michael Barr, vice chair for supervision of the board of governors of the Federal Reserve, testifies during a House Committee on Financial Services hearing on Oversight of Prudential Regulators, on Capitol Hill in Washington, DC, on May 16, 2023. The Federal Reserve's top banking regulator expressed caution Tuesday about the impact that artificial intelligence can have on efforts to make sure underserved communities have fair access to housing. Michael S. Barr, the Fed's vice chair for supervision, said AI technology has the potential to get credit to "people who otherwise can't access it." As an example, he said AI can be manipulated to perform "digital redlining," which can result in majority-minority communities being denied access to credit and housing opportunities. Barr said work being done by the Fed and other regulators on the Community Reinvestment Act will be focused on making sure underserved communities have equal access to credit.

Persons: Michael Barr, Michael S, Barr Organizations: Federal, Financial, Prudential Regulators, Capitol, National Fair Housing Alliance, Community Locations: Washington ,

With the second half of the year now underway, investors may want to take another look at their fixed income portfolio. High yields have been a boon to income investors, as the Federal Reserve increased interest rates over the past year. "For more of our clients, we're looking to have the fixed income of the portfolio provide lower correlation and income," he said. Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors, generally prefers securitized assets such as asset-backed and mortgage-backed securities. "You can't think of high yield bonds in the same thought as Treasurys," said Cox of eToro.

Persons: James Franke, Sonal Desai, She's, We're, It's, Desai, Franke, Rothschild, Callie Cox, Greg Wilensky, Janus Henderson, Cox Organizations: Federal Reserve, Treasury, Rothschild Investment, Franklin, Janus, Janus Henderson Investors Locations: Treasurys, U.S, eToro

☆ Here are Monday's biggest analyst calls: Apple, Pepsi, Yelp, Chewy, Netflix, Nvidia, Tesla, Meta and more
▼ + stars: | 2023-07-17 | by ( Michael Bloom | ) www.cnbc.com time to read: +8 min

"We are initiating coverage with an ONON with an Outperform rating and $38 price target. Citi opens a positive catalyst watch on Valvoline Citi opened a positive catalyst watch on Valvoline and says it has robust fundamentals. "We open a 30-day upside catalyst watch based on strong fundamentals and the stock's relative under-performance post completion of the Dutch tender offer on 6/8." Citi opens a positive catalyst watch on Bank of New York Mellon Citi opened a positive catalyst watch on the investment bank ahead of earnings Tuesday. Morgan Stanley reiterates Apple as overweight Morgan Stanley raised its price target on Apple to $220 from $190 and says India is the company's "next frontier."

Persons: TD Cowen, Cowen, Goldman Sachs, it's, Wells, Tesla, Wells Fargo, Morgan Stanley, Apple, Morgan Stanley downgrades Conagra, Morgan Stanley downgrades Pepsi, Raymond James downgrades, Raymond James, Bernstein, Aramark, Oppenheimer Organizations: Citi downgrades AT, Citi, Valvoline Citi, Bank of New York Mellon Citi, BK, Nvidia, Deutsche Bank, Netflix, Baidu, Apple, Pepsi, Barclays, LT, JPMorgan, Bank of America, Zynga, NXP Semiconductors, Intel Citi, Intel, AMD, Meta, Suisse, Arista Networks, ISI Locations: eCommerce, China, India, Apple India

May enroll in U.S. Bank Smart Rewards if you meet certain requirements Cons Dash icon A dash. Savings Account 3.75 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Annual Percentage Yield (APY) 0.03% Minimum Deposit Amount $25 Fees $1 Start savingSantander® Bank, N.A. Savings Account 3.75 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Annual Percentage Yield (APY) 0.03% Minimum Deposit Amount $25 Fees $1 View Full Details Start saving On Santander Bank's site. Low APY Dash icon A dash. $5 maintenance fee per quarter if you don't have at least $5 in your account Dash icon A dash.

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Specialist asset managers minted CLOs worth more than half a trillion dollars in 2021, a year of heavy post-pandemic monetary stimulus. S&P Global estimates that more than one in 25 U.S. businesses and almost one in 25 European companies will default by March 2024. That has squeezed equity returns, and without equity investors, CLOs cannot be put together. S&P calculates that while CLO equity investors were able to get a 15% annual return before 2022, deals priced now would offer about 7%. "The (CLO) equity doesn't make enough money to justify buying it."

Persons: Florence Lo, CLOs, Morgan, Rob Shrekgast, KopenTech, Neha Khoda, It's, Marta Stojanova, You've, Aza Teeuwen, Laila Kollmorgen, Kollmorgen, tranches, BoFA, Naomi Rovnick, Chiara Elisei, Dhara Ranasinghe, Alexandra Hudson Organizations: REUTERS, Bank of America, Casino, Bed, TwentyFour, PineBridge Investments, Alexandra Hudson Our, Thomson Locations: CLOs, U.S

☆ A portfolio manager at a $179 billion asset manager breaks down how he picks stocks that can endure a volatile economy — and shares 6 of his favorite names to buy
▼ + stars: | 2023-06-30 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +6 min

Portfolio manager Elias Erickson focuses on finding stocks that can withstand market fluctuations. With the bull market still flourishing, current stock market conditions are a far cry from where they began the year. Coming off last October's market lows, a series of macroeconomic factors have given equities plenty of whiplash this year. "We're trying to buy businesses that will be adaptable to a variety of different macroeconomic environments," Erickson explained to Insider in an interview. Constellation Software, a Canadian-based acquirer of vertical market software, also makes up one of Erickson's largest positions.

Persons: Elias Erickson, Roger Altman, Paul Krugman, Elias Erickson isn't, Erickson, That's, Hermès, they've, Sartorius Organizations: SAP, Constellation Software, Constellation, Mastercard Locations: Canadian, Lonza

Georgetown University in Washington, D.C. Not everyone with debt would have been covered under the Biden administration’s student loan forgiveness plan. The Supreme Court has barred the Biden administration from carrying out its plan to extinguish up to $20,000 in federal student loan debt, and millions of borrowers will continue to struggle under the weight of their loans. Ms. Schmidt owes $64,000 in student debt, more than half of which is for her graduate work in nursing. But she’s already contemplating how she’ll finance her dream of becoming a civil rights lawyer, which typically requires an additional six figures in student debt. Yet her mother is still paying down student debt of her own.

Persons: Biden, Gina McDavitt, weren’t, Pell, “, ”, McDavitt, ” Ms, Ms, Monica Schmidt, Schmidt, Kevin Serna, Dorien Rogers, Rogers, Asha Anthony, she’s, —, Anthony, Mr, don’t, Joanna Leiserson, Brian Kaiser, “ I’m, Leiserson Organizations: Georgetown University, Biden, College of San, San Francisco State University, The New York Times, University of Phoenix, Northern Illinois University, Public, Schaun, Tax, Howard University, Salisbury University, The New York, Republicans Locations: Washington ,, College of San Mateo, Bay, Vallejo , Calif, Genoa, Ill, Germantown, Md, Credit, Montgomery County, Mesa, Maryland, Spokane, —, forbearance

☆ Fed paper argues 'bleak' stock market returns could slide to 2% annually
▼ + stars: | 2023-06-29 | by ( Jeff Cox | ) www.cnbc.com time to read: +3 min

"The boost to profits and valuations from ever-declining interest and corporate tax rates is unlikely to continue, indicating significantly lower profit growth and stock returns in the future," Smolyansky says. Part of the thesis is a gap between the stock market average return and the 2.5% rate of real economic growth. "Stock price performance above this 2 percent real rate could only be accomplished by the perpetual expansion of P/E multiples. DataTrek research co-founder Nicholas Colas wrote that the paper's general assumption about taxes and interest rates and their correlation to stock market returns is "obviously true, but only to a point." Colas noted that interest rates in particular have been on the decline around the world, but global stock returns have been flat since 2008.

Persons: Michael Smolyansky, Smolyansky, Nicholas Colas, Colas Organizations: Federal Locations: Washington

☆ Short-duration bonds offer an 'interesting reinvestment opportunity', says NewEdge Wealth
▼ + stars: | 2023-06-27 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailShort-duration bonds offer an 'interesting reinvestment opportunity', says NewEdge WealthBen Emons, head of fixed income for NewEdge Wealth discusses how investors should approach the fixed income markets before "the big turn".

Persons: Ben Emons Organizations: NewEdge Wealth

☆ This little-known income play offers portfolios price stability and yield
▼ + stars: | 2023-06-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Floating rate notes' short duration gives them a measure of relative price stability, while offering investors' portfolios some support through variable income. It's the prospect of higher rates for longer, along with the inverted yield curve, that make floating rate notes an attractive play for some. For his clients, Winter has committed between a quarter and a third of investors' fixed income allocation to floating rate notes. "It's lower coupon rates versus the opportunity to lock in high fixed rates now if you consider the environment," said Collin Martin, fixed income strategist at Charles Schwab. That means in a recession, you may not get an increase in floating rate note prices to offset a decline in equities, he said.

Persons: Allison Bonds, Bonds, Jerome Powell, Paul Winter, Winter, aren't, Collin Martin, Charles Schwab Organizations: State Street's U.S, Treasury Bond ETF, Federal Reserve, Federal, Five Locations: Treasurys

☆ Opinion | Reparations Should Be an End, Not a Beginning
▼ + stars: | 2023-06-22 | by ( John Mcwhorter | ) www.nytimes.com time to read: +2 min

For a long while, reparations for Black Americans has been more a debate topic than a reality. I know that various groups of Americans have been granted reparations in the past, such as the descendants of Japanese Americans placed in internment camps during World War II. And I certainly believe that Black Americans have deserved reparations. It’s more that I have questioned the idea of what I would regard as new reparations. Affirmative action can be seen as an enormous reparations policy, although the term is rarely used in that context.

Persons: I’ve, William Darity Jr, Kirsten Mullen’s “, ”, Boris Bittker Organizations: Black, New, New York State, National Welfare Rights Organization, Reinvestment Locations: Evanston, Ill, San Francisco, New York

☆ Municipal bonds can offer your portfolio tax-free income and stability as recession fears loom
▼ + stars: | 2023-06-21 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

"People see [municipal bonds] as a defensive position for two reasons," said Shannon Saccocia, chief investment officer at NB Private Wealth. "Historically, municipal bonds have had low default rates," wrote Jared Woodard, investment and exchange-traded fund strategist at Bank of America, in a June 12 report. For instance, there's the Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares (VCAIX) and the Nuveen New York Quality Municipal Income Fund (NAN) . In select situations, some advisors are recommending closed-end municipal bond funds. Closed-end muni bond funds trading at a deep discount include the BNY Mellon Municipal Income (DMF) and the MFS High Income Municipal (CXE) .

Persons: Shannon Saccocia, Jerome Powell, Jared Woodard, Nisha Patel, Patel, Paul Winter Organizations: Bank of America, Bond, Muni Bond ETF, Vanguard, Income Fund, Five, BNY, Income Locations: York, BNY Mellon

Money market funds Assets in retail money market funds grew to $1.99 trillion, according to the latest data from the Investment Company Institute . Further, even as money market funds offer relative safety, they can still face some risk. Don't confuse money market funds with money market accounts. Though money market accounts – which are offered by banks – are protected by the Federal Deposit Insurance Corporation, up to $250,000, money market funds are not. Certificates of deposit and high-yield savings accounts Liquidity should be a big factor for investors eyeing bank products like CDs and high-yield savings accounts.

Persons: Jamie Hopkins, Hopkins, Don Grant, Jordan Benold, Lehman, Danika Waddell, BancShares, Waddell Organizations: Federal, Carson Group, Sabre, Investment Company Institute, Investors, –, Lehman Brothers, Federal Deposit Insurance Corporation, Xena, BMO, Ally Financial, CIT Bank, Synchrony, Ally, Capital

LONDON, June 13 (Reuters) - Incoming Bank of England rate-setter Megan Greene signalled on Tuesday that the central bank may have a tough job returning British inflation to its 2% target, even if it drops quickly at first from double-digit figures. British inflation fell in April from double digits to 8.7% but this was still jointly the highest reading among Group of Seven countries, along with Italy. Short-dated British government bond yields rose to their highest level since 2008 as Greene spoke. She described inflation expectations in Britain as pretty well-anchored, but said there were lessons from the 1970s on how not to conduct monetary policy. Greene will replace MPC member Silvana Tenreyro, who has voted against the BoE's rate increases in recent months.

Persons: Megan Greene, Greene, Kroll, BoE, Silvana Tenreyro, Kylie MacLellan, Suban Abdulla, Sarah Young, Catherine Evans Organizations: Incoming Bank of, Monetary, parliament's, MPC, Thomson Locations: Italy, Britain, U.S

☆ The U.S. reached a deal on the debt ceiling. Here’s what might be next for investors in Treasurys
▼ + stars: | 2023-06-04 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

The worst of the debt ceiling crisis is over now that lawmakers have passed a bill and sent it to President Joe Biden for signing, but investors are about to see an influx of Treasury securities enter the market. A large issuance of new Treasurys could push down prices of holdings in investors' portfolios. While large investors scoop up the new T-bills, the extent to which individual investors capture the benefit will also depend on the Federal Reserve's policy stance. "As you get past the debt ceiling, getting paid on your cash is still a concern, and doing it with T-bills where you still get a 5% yield is attractive," Tannuzzo said. "Interest rates have been so low, and to see 4%, 5% on T-bills – you can make money on money, and that's wonderful," Shagawat said.

Persons: Joe Biden, Morgan Stanley, Gene Tannuzzo, Tannuzzo, James Shagawat, Greg McBride, Shagawat, Treasurys, he's, Michael Bloom Organizations: Treasury, Columbia, Federal, Federal Reserve, AdvicePeriod

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