Traders have been buying everything this month, and that could continue to push prices higher in stocks while fueling a turnaround in bonds and gold. Headlines Hide the Good News in Earnings Despite some headline grabbing disappointments, earnings season is actually off to a good start. About one-fifth of the companies in the S&P 500 index have reported earnings,… Read More

Traders have been buying everything this month, and that could continue to push prices higher in stocks while fueling a turnaround in bonds and gold. Headlines Hide the Good News in Earnings Despite some headline grabbing disappointments, earnings season is actually off to a good start. About one-fifth of the companies in the S&P 500 index have reported earnings, and 66.4% have beaten estimates. Over the past four quarters, 64.6% of companies have beaten estimates on average. We are still weeks away from knowing what the number will ultimately be for this quarter, but it is a promising start.#-ad_banner-# Headlines have been focused on the companies that have come in below expectations. That list includes Intel (Nasdaq: INTC), Microsoft (Nasdaq: MSFT) and Google (Nasdaq: GOOG). INTC fell 3.6% for the week, MSFT was down 12%, and GOOG was off 2.9%. These losses weighed down PowerShares… Read More

Fixed-income investments seem like a losing bet for now. Interest rates are low resulting in a small amount of income in dollar terms for even the largest investors. A $1 million investment in 30-year Treasury bonds offers about $36,000 a year in income. This might seem low, but Treasury bonds really have not been a… Read More

Fixed-income investments seem like a losing bet for now. Interest rates are low resulting in a small amount of income in dollar terms for even the largest investors. A $1 million investment in 30-year Treasury bonds offers about $36,000 a year in income. This might seem low, but Treasury bonds really have not been a source of high income since about 1986, when rates fell below 9%. Gains for fixed-income investors have come from rising bond prices that accompanied falling rates. When rates rise, prices will fall, and those losses could destroy several years’ of worth of low-income payments. While even investors with million-dollar accounts are earning low income, most investors are earning even less income in dollar terms. To increase income, many investors have accepted more risk. An… Read More

Fixed-income investments seem like a losing bet for now. Interest rates are low resulting in a small amount of income in dollar terms for even the largest investors. A $1 million investment in 30-year Treasury bonds offers about $36,000 a year in income. This might seem low, but Treasury bonds really have not been a… Read More

Fixed-income investments seem like a losing bet for now. Interest rates are low resulting in a small amount of income in dollar terms for even the largest investors. A $1 million investment in 30-year Treasury bonds offers about $36,000 a year in income. This might seem low, but Treasury bonds really have not been a source of high income since about 1986, when rates fell below 9%. Gains for fixed-income investors have come from rising bond prices that accompanied falling rates. When rates rise, prices will fall, and those losses could destroy several years’ of worth of low-income payments. While even investors with million-dollar accounts are earning low income, most investors are earning even less income in dollar terms. To increase income, many investors have accepted more risk. An… Read More

Federal Reserve Chairman Ben Bernanke ignited another stock market rally and stocks ended last week near all-time highs. Traders will stay focused on Bernanke for at least the next week. All Eyes Will Stay On the Fed Last week, SPDR S&P 500 (NYSE: SPY) gained 2.75% as traders… Read More

Federal Reserve Chairman Ben Bernanke ignited another stock market rally and stocks ended last week near all-time highs. Traders will stay focused on Bernanke for at least the next week. All Eyes Will Stay On the Fed Last week, SPDR S&P 500 (NYSE: SPY) gained 2.75% as traders once again cheered the Fed’s easy money policy. This week, monetary policy should remain in focus as Bernanke makes his semi-annual visit to Capitol Hill. During the past month, the chairman’s words have sparked a sell-off (in mid-June) and a recovery (last week) in stock prices. It is unlikely he will add any new information about policy in his testimony, but his words will be scrutinized. A 30-minute chart of SPY shows the impact Bernanke had on prices last week. A speech after the close on Wednesday, where… Read More

Traders seemed to like the prospects of low unemployment last week even though that could lead to the end of easy money from the Fed, a prospect that caused a sell-off just weeks ago. Last week’s price gains could be reversed soon as additional economic data and company earnings are released. Stocks Change Their Mind and… Read More

Traders seemed to like the prospects of low unemployment last week even though that could lead to the end of easy money from the Fed, a prospect that caused a sell-off just weeks ago. Last week’s price gains could be reversed soon as additional economic data and company earnings are released. Stocks Change Their Mind and Gain on News Showing Fed May Taper Soon On Friday, the employment report provided good news about the state of the economy and stocks rallied. SPDR S&P 500 (NYSE: SPY) gained 1.08% for the day and 1.62% in a three-and-a-half day, holiday-shortened trading week.#-ad_banner-# Unemployment was unchanged at 7.6%, but the details in the jobs report showed some strength in the economy. The economy added 195,000 jobs in June, and estimates for gains in both May and April were… Read More

Income-starved investors are faced with bleak prospects. Stocks in the S&P 500 index might only reward investors with a dividend yield of 2% or so over the next 12 months. As an alternative, investors could consider 10-year Treasury notes, but those pay even less. Based on history and very long-term charts, stocks do seem like the better choice. Prior to 1951, stocks offered investors more income than bonds. Read More

Income-starved investors are faced with bleak prospects. Stocks in the S&P 500 index might only reward investors with a dividend yield of 2% or so over the next 12 months. As an alternative, investors could consider 10-year Treasury notes, but those pay even less. Based on history and very long-term charts, stocks do seem like the better choice. Prior to 1951, stocks offered investors more income than bonds. As you can see in the chart below, something changed in 1951, and bond yields topped dividend yields for the next 60 years. In November 2011, the relationship reverted back to its historical alignment, and stock market yields have been at least slightly above bond yields ever since. This relationship is important to income investors because asset allocation rules have been developed based on the data. Many retirement investors have learned that a balanced portfolio should be 60%… Read More

Income-starved investors are faced with bleak prospects. Stocks in the S&P 500 index might only reward investors with a dividend yield of 2% or so over the next 12 months. As an alternative, investors could consider 10-year Treasury notes, but those pay even less. Based on history and very long-term charts, stocks do seem like the better choice. Prior to 1951, stocks offered investors more income than bonds. Read More

Income-starved investors are faced with bleak prospects. Stocks in the S&P 500 index might only reward investors with a dividend yield of 2% or so over the next 12 months. As an alternative, investors could consider 10-year Treasury notes, but those pay even less. Based on history and very long-term charts, stocks do seem like the better choice. Prior to 1951, stocks offered investors more income than bonds. As you can see in the chart below, something changed in 1951, and bond yields topped dividend yields for the next 60 years. In November 2011, the relationship reverted back to its historical alignment, and stock market yields have been at least slightly above bond yields ever since. This relationship is important to income investors because asset allocation rules have been developed based on the data. Many retirement investors have learned that a balanced portfolio should be 60%… Read More

Income-starved investors are faced with bleak prospects. Stocks in the S&P 500 index might only reward investors with a dividend yield of 2% or so over the next 12 months. As an alternative, investors could consider 10-year Treasury notes, but those pay even less. Based on history and very long-term charts, stocks do seem like the better choice. Prior to 1951, stocks offered investors more income than bonds. Read More

Income-starved investors are faced with bleak prospects. Stocks in the S&P 500 index might only reward investors with a dividend yield of 2% or so over the next 12 months. As an alternative, investors could consider 10-year Treasury notes, but those pay even less. Based on history and very long-term charts, stocks do seem like the better choice. Prior to 1951, stocks offered investors more income than bonds. As you can see in the chart below, something changed in 1951, and bond yields topped dividend yields for the next 60 years. In November 2011, the relationship reverted back to its historical alignment, and stock market yields have been at least slightly above bond yields ever since. This relationship is important to income investors because asset allocation rules have been developed based on the data. Many retirement investors have learned that a balanced portfolio should be 60%… Read More

Income-starved investors are faced with bleak prospects. Stocks in the S&P 500 index might only reward investors with a dividend yield of 2% or so over the next 12 months. As an alternative, investors could consider 10-year Treasury notes, but those pay even less. Based on history and very long-term charts, stocks do seem like the better choice. Prior to 1951, stocks offered investors more income than bonds. Read More

Income-starved investors are faced with bleak prospects. Stocks in the S&P 500 index might only reward investors with a dividend yield of 2% or so over the next 12 months. As an alternative, investors could consider 10-year Treasury notes, but those pay even less. Based on history and very long-term charts, stocks do seem like the better choice. Prior to 1951, stocks offered investors more income than bonds. As you can see in the chart below, something changed in 1951, and bond yields topped dividend yields for the next 60 years. In November 2011, the relationship reverted back to its historical alignment, and stock market yields have been at least slightly above bond yields ever since. This relationship is important to income investors because asset allocation rules have been developed based on the data. Many retirement investors have learned that a balanced portfolio should be 60%… Read More

Income-starved investors are faced with bleak prospects. Stocks in the S&P 500 index might only reward investors with a dividend yield of 2% or so over the next 12 months. As an alternative, investors could consider 10-year Treasury notes, but those pay even less. Based on history and very long-term charts, stocks do seem like the better choice. Prior to 1951, stocks offered investors more income than bonds. Read More

Income-starved investors are faced with bleak prospects. Stocks in the S&P 500 index might only reward investors with a dividend yield of 2% or so over the next 12 months. As an alternative, investors could consider 10-year Treasury notes, but those pay even less. Based on history and very long-term charts, stocks do seem like the better choice. Prior to 1951, stocks offered investors more income than bonds. As you can see in the chart below, something changed in 1951, and bond yields topped dividend yields for the next 60 years. In November 2011, the relationship reverted back to its historical alignment, and stock market yields have been at least slightly above bond yields ever since. This relationship is important to income investors because asset allocation rules have been developed based on the data. Many retirement investors have learned that a balanced portfolio should be 60%… Read More