Wednesday, February 1, 2017

U.S. News: Why the Bond Market Pullback Shouldn't Worry Investors

By SIMON CONSTABLE

The bond market is in a good news, bad news situation. The bad news is that bond prices are down. That's also the good news.

Here's what long-term investors need to know: stay calm. 

Here's what happened in the fixed-income market: it sank. For instance, the iShares iBoxx Investment Grade Corporate Bond exchange-traded fund (ticker: LQD), which holds a basket of high-quality fixed-income securities, retreated 4.7 percent in the six months through Jan. 18, while the Standard & Poor's 500 index gained 5 percent.

"Expectations of higher U.S. economic growth drove expectations of higher inflation, sending interest rates higher," says Vinny Catalano, global macro strategist at Blue Marble Research in New York. Interest rates and bond prices move inversely, so higher interest rates mean lower bond prices. Read more here.

Photo by Sophie Backes on Unsplash

Thursday, January 26, 2017

Forbes: How Britain Can Beat The Brexit Blues

By SIMON CONSTABLE

Here's an idea. For a better future, as the U.K. quits the European Union it should look to its past and re-establish trade links with the old empire. It would almost certainly benefit all concerned. Here are some reasons why:

Tuesday, January 24, 2017

Forbes: Davos Just Jumped The Shark

By SIMON CONSTABLE

There are many symbols of how much the world changed over the past year. But for me, Davos stands out.

The annual meeting of the World Economic Forum in Davos now seems as dated as wearing a top hat and frock coat to the office. It has jumped the shark. That's primarily because its image in the public mind jars with a radically changed zeitgeist. Read more here.