Updates, Tips, & Finance News

Hi there,

Some riskier parts of the bond market did pretty well this week.

As it related to indexes, the loan index was up about 0.25%, the junk bond index was up about 0.17%, and the stock market index had about an 0.11% gain.

With some new developments on interest rates from the Fed, our view is that stocks and high yield bonds may rally in the coming weeks and months.

Hope you have a good weekend!

-Saul


Disclosure: The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. The information provided does not take into account the specific objectives, financial situation or particular needs of any specific person. Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Forecasts or projections of investment outcomes in investment plans are estimates only, based upon numerous assumptions about future capital markets returns and economic factors. As estimates, they are imprecise and hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Investing entails risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time. Riskier parts of the bond market was in reference to the junk bond index defined below. The loan index is in reference to the Credit Suisse Leveraged Loan Total Return Index with performance data gathered from Bloomberg under the ticker CSLLLTOT Index for the date range of 2/4/2019 – 2/8/2019. The junk bond index was in reference to the Bloomberg Barclays US Corporate High Yield Total Return Index with performance data gathered from Bloomberg under the ticker LF98TRUU Index for the date range of 2/4/2019 – 2/8/2019. The stock market index is in reference to the S&P 500 Index with performance data gathered from Bloomberg under the ticker SPX Index for the date range of 2/4/2019 – 2/8/2019. An index is unmanaged, does not reflect management or trading fees, and one cannot invest directly in an index. Statements about a possible rally in the future in stocks and high yield bonds from the Fed’s actions on interest rates was in reference to Scott Minerd’s statements during an interview on Bloomberg TV on 2/7/2019 (https://www.bloomberg.com/news/videos/2019-02-07/guggenheim-s-minerd-expects-high-yield-and-stock-rally-to-be-sustained-video).