Eric Blattner 5/13/24 Eric Blattner 5/13/24

How Much Cash is Too Much?

Is Cash Trash? Historically, cash has not been one of the best long-term investments, especially after we consider taxes and inflation, and relative to other options that have protected or even grown purchasing power.

Eric Blattner 4/25/24 Eric Blattner 4/25/24

Where Will Interest Rates Go Next?

There was a 50% chance rates would be cut by 1.5% this year, all the way to the 3.50% to 3.75% range.

At the same time, the idea of rates remaining high (or even rising) seemed improbable, to say the least. Fast forward to today. The current odds that the lower end of the Fed Funds target range will be 5.0% or higher by the end of the year is basically a 1-to-1 coin flip.

Consider this another example of just how quickly expectations about interest rates can change.

Eric Blattner 2/16/24 Eric Blattner 2/16/24

Looking Past the S&P 500: Is Everything at All-Time Highs?

If you are reading this, the odds are high that you don’t have 100% of your investable assets in an index fund tracking the S&P 500. You probably own other types of investments. So, what about smaller companies? Or foreign companies? Or other asset classes? Are they also at all-time highs? It turns out other pockets have not participated in this run, at least not to the same degree.

Eric Blattner 11/8/23 Eric Blattner 11/8/23

Time to Buy Bonds?

Is it time to buy bonds?

This question has become much more common as interest rates have risen. Recently, the yield on 10-year U.S. Treasury bonds hit 5% for the first time since 2007. Many money market mutual funds (say that five times fast!) are yielding over 5%.

So, are bonds a good buy now? Here are a few considerations before pulling the trigger.

Eric Blattner 9/8/23 Eric Blattner 9/8/23

5% Money Market Yields. Pros and Cons.

Cash is cool. Interest rates on money market funds are well over 5%. The 3-month U.S. Treasury Bill yield is 5.5%. Assets in money market funds are at all-time highs, nearing $5.5 trillion. Some people have asked if they should be investing in stocks or other asset classes when they can safely earn 5%. Here are a few things to consider when trying to answer that question.

Eric Blattner 8/25/23 Eric Blattner 8/25/23

HOUSING: Three Trends to Watch

From 2019 through 2021, over $6 trillion in home loans were refinanced at ultra-low rates. Cheap money has many homeowners feeling trapped. Zillow just reported half of buyers surveyed between April and July were first-time homeowners, further evidence existing owners are staying put. With existing supply depressed, new construction is attempting to fill the void.

Eric Blattner 8/17/23 Eric Blattner 8/17/23

Three Things About Higher Rates

Interest rates on bonds haven’t been this high in about 15 years. Whether you consider this to be good or bad news may depend on your perspective. Higher rates generally offer a better starting point for bond investors, and high-quality bonds may be in a better position to offset other risks in your portfolio. Stock investors traditionally have been willing to pay less (in terms of P/E multiples, for example) for expected earnings as interest rates rise, which can put pressure on stock returns. Regardless, history has seemed to reward stock owners over the long term, even in periods characterized by higher interest rates.