But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Must-read: Use emerging market bonds for higher yield potential
For those who want a little more adventure on their menu, there’s always the option of adding some unique flavors like spicy kebabs. This is the equivalent of adding some emerging markets fixed income to your bond portfolio.
The decadent offering of barbecued ribs at a weekend party is similar to that of high yield fixed income investments. By taking on greater risk of spilling sauce on your shirt you have the experience of a true summertime staple…
Just like a prime, choice, or select cut of beef, there are investment grade bonds that are rated according to credit quality. Investment grade describes bonds that are “AAA” or “AA” (high credit quality) and “A” to “BBB” (medium credit quality).
If you’re Matt Tucker, everything reminds you of investing, even the last barbecue of the summer. Read on to discover how your bond portfolio may very well resemble a Labor Day mixed grill.
Retail sales, excluding food services, make up about 27% of the total U.S. GDP. They’re an important driver for economic growth. An uptick in retail sales usually means upside for broad-based equity markets like the S&P 500 Index.
The U.S. Census Bureau will release the factory orders report for July on Wednesday, September 3. Factory orders include both durable and non-durable goods orders.
Services consist of industries like banking, insurance, transportation, and scientific and technical services. The services sector accounts for almost 80% of the U.S. gross domestic product or GDP (Source: CIA).
The Bureau of Economic Analysis of the U.S. Department of Commerce will release light vehicle auto sales for August on Thursday, September 4. Auto sales are one of the most important consumer confidence indicators.
Gallup issues the U.S. payroll-to-population (or P2P) ratio each month, based on ~30,000 phone interviews with Americans over the course of the month.
Few economic releases generate as much reaction from both stock (SPY)(IVV) and bond (BND) markets as the employment reports issued by Automatic Data Processing (or ADP) and the Bureau of Labor Statistics (or BLS).
The U.S. Census Bureau will release construction spending figures for July on Tuesday, September 2. Construction spending increases or decreases would imply an increase or decrease in economic activity.
Private financial data provider Markit Intelligence also releases its version of the PMI each month. Both the Institute for Supply Management’s (or ISM) and Markit’s PMI reports attract a lot of interest from financial markets.
The ISM will release the manufacturing PMI for August on September 2. The PMI is a composite measure of economic activity. It’s based on surveys of private-sector firms.
Each month, Gallup releases its estimate of daily discretionary expenditure by the average American. The expenditure estimate excludes regular household bills and big-ticket items like refrigerators and cars.
Economic indicators measure performance at a macro or overall economy-wide level. They provide valuable data points to investors, signaling the direction the economy is headed in.
In 2008, the Great Recession hit the U.S. and world economies. The Icelandic financial crisis was from 2008 to 2011. It impacted the Eurozone. The U.S. gradually recovered from the high levels of unemployment that resulted from the Great Recession in 2008. However, the situation in the Eurozone didn’t improve. It was impacted by the sovereign debt crisis. The debt crisis hit the European economy in 2011.
The Eurozone’s unemployment is characterized by fairly complex interactions. Mario Draghi, the President of the European Central Bank (or ECB), discussed a need for aggregate demand policies and national structural policies. He expressed his views during his speech at the recent Economic Policy Symposium in Jackson Hole, Wyoming.
Mario Draghi, the President of the European Central Bank (or ECB), stated that monetary policy can and should play a central role on the demand side. Currently, this means an accommodative monetary policy for an extended period of time.
Another example that highlights the heterogeneity within the European labor markets is Spain versus Ireland. Spain and Ireland both experienced large employment destruction in the construction sector after the Lehman shock. However, they fared differently during the sovereign debt crisis.
The difference in unemployment rates between the countries is connected to structural developments in the labor markets. The heterogeneity is a result of different initial conditions like employment’s varying sectoral compositions. Also, unemployment rates have historically been higher in some Eurozone countries than others.