As investors, you have all been on the receiving end of sales pitches from brokers, friends and investment advisors about stocks that they claim will deliver spectacular returns. These stories not only sound persuasive and reasonable but are also backed up by evidence—anecdotal, in some cases, and statistical, in others—that the strategies work. When you […]
Interest Rate Risk
The return of fiscal policy – A step in the right direction by Nouriel Roubini
Nouriel Roubini is a widely known professor at NYU’s Stern School of Business, and was senior economist for international affairs in the White House’s council of economic advisers during the Clinton era. He has also worked for the IMF, the Federal Reserve, and the World Bank. Since the global financial crisis of 2008, monetary policy […]
Interest Rate Risk – Market Interest Rate and Bond Prices
You may have noticed articles in the media about investors “chasing yield,” the so-called “bond bubble,” or predictions about declines in bond prices. some of these warnings about a drop in bond prices relate to the potential for a rise in interest rates. Interest rate risk is common to all bonds, particularly bonds with a […]