Shawn Snyder’s Post

The 60/40 portfolio is dead. While #stocks are still the best way to make long-term profits, #bonds no longer provide a safe, profitable counterbalance. Rebalance your portfolio with this superior asset 👇 https://bit.ly/472OdYj

US money-market assets have reached a new record of $5.5 trillion. Source: Bloomberg, Lisa Abramowicz US Treasuries are on course for a record year of inflows as investors chasing some of the highest yields in months pile into #cash and #bonds, according to Bank of America Corp. strategists. Cash funds attracted $20.5 billion and investors poured $6.9 billion into bonds in the week through August 9, strategists led by Michael Hartnett wrote in a note, citing data from EPFR Global. Meanwhile, US #stocks had their first outflow in three weeks at $1.6 billion. Flows into Treasuries have reached $127 billion this year, set for an annualized record of $206 billion, BofA said. The buoyant demand shows how alluring fixed-income markets remain even as the bond rally and economic slowdown many were predicting last year has failed to materialize. The yield on 10-year US Treasuries was trading at around 4.09% on Friday, up from a low of around 3.25% in April, and near a 15-year high touched last year.

S&P 500, Nasdaq notch biggest weekly losses since March Wall Street see-sawed to a lower close on Friday, capping a tumultuous week during which benchmark Treasury yields hit 16-year highs and investors digested the Federal Reserve's hawkish outlook revisions.

Harsh reality of ‘higher-for-longer’ rates looms over US stocks The Federal Reserve’s hawkish stance boosts Treasury yields & slams stocks, some investors are preparing for more pain #investing #stocks #simplewealth #financialplanning #retirementplanning

DOLLARS AND SENSE: STAY AHEAD OF MARKETS ** Investors loving higher rates on U.S. Treasuries, for now ** It’s been a long time since cash and cash equivalents, like short duration U.S. Treasuries, have paid meaningful interest.   The 2-year U.S. Treasury Note, currently yielding 4.74%, has not risen to this level since July 2007. Many investors were enamored with cash paying 4-5% and felt safe rotating into the traditional safe-haven asset during a risk-off environment that saw all major stock indices drawdown meaningfully. Last year, the S&P 500 index fell -25.43% while the Nasdaq 100 index stumbled -35.56% peak-to-trough. But these impressive yields from U.S. Treasuries won’t last if and when interest rates fall. This is called reinvestment risk. If you’re purchasing these short-term instruments, higher rates are not locked in for long and you’ll need to reinvest principal more often. These Treasury yields are quoted as annualized yields that assume the investor will reinvest all proceeds at the prevailing rate again and again as these short-dated Treasuries mature. #investing #markets #money #earnings #SPX #sp500 #fed #federalreserve #economy #volatility #bullmarket #bearmarket #stocks #stockmarket #bonds #bondmarket #interestrates #fedpolicy #moneysupply #monetarypolicy #VIX

At long last, intermediate, investment-grade bonds offer a compelling alternative to equities. Read more from Jack Ablin, CFA in this week's market update. //https://lnkd.in/gVN7ideq #stocks #bonds #market #marketupdate

My latest Alpha Architect article examines the implications of shifting correlation between stocks and bonds. https://lnkd.in/ge-2aXBV #investmentstrategies #stocks #bonds

** Time horizons matter **   In the stock market, time pays. The longer your investing time period, the more likely you will experience gains in your portfolio.   As they often say, it’s about “time in the market, not timing the market.”   Since 1928, the S&P 500 has generated a positive total return more than 89% of the time over all 5-year periods. Those are really good odds, if you buy and hold.   What’s more, there’s never been a period where the S&P 500 didn’t generate a positive return for all 16+ year time frames.   #investing #markets #money #earnings #SPX #sp500 #fed #federalreserve #economy #volatility #bullmarket #bearmarket #stocks #stockmarket #bonds #bondmarket #interestrates #fedpolicy #moneysupply #monetarypolicy #VIX #inflation

In this video, we'll analyze the recent surge in 10-year Treasury bond yields, nearing the $5 level, signaling potential challenges for the stock market. Join us as we delve into the significance of these rising rates and their impact on equities in the fourth quarter. #stockmarket #treasurybonds #investing #financenews