Find your mix of safe and risky bonds
Like many other investments, bonds also require investors to take greater risk for greater returns, and they can experience wide swings in price and yield.
See your bonds and bond funds react to rate moves
Your financial adviser doesn't want you to read this column. Many retirement investors, egged on by brokers and mutual-fund companies, put a great deal of emphasis on crafting finely tuned portfolios out of stocks, bonds and—increasingly, ...
If Wall Street is a struggle between fear and greed, both sides seemed plenty crowded this past week. The fearful, eyeing political turmoil and deep fiscal woes in Greece, snapped up 10-year Treasury notes with yields as low as 1.70%, near ...
NEW YORK (MarketWatch) — Investors’ hunger for income, which has driven billions of dollars of assets into dividend-focused funds, is now bringing forth a new investment product: multi-asset-class income vehicles.
BOSTON (MarketWatch) — Well over a decade ago, I got a note from an investor who said he did not understand how average investors were supposed to keep up with “recommended behavior for fund investors.”
When Jefferson County, Ala., defaulted on some municipal bonds last month, investors may have been surprised to learn that the county lacked the authority to fulfill the most basic obligation of its "general obligation" debt: It didn't have ...
After a surprisingly solid year, the $3.7 trillion muni-bond business is getting another boost: the return of insurance. For investors, this means more municipal bonds will again come with an added layer of protection. The downside is that ...
Bad ideas can get investors into trouble. So can good ideas that morph into bad ones. Ever since they were introduced in the U.S. in 1993, exchange-traded funds—those bundles of stocks, bonds or other assets that offer the diversification of ...
For investors looking to diversify into emerging markets, they might be surprised to know there's more than stocks on the menu. Instead, portfolio managers increasingly suggest emerging-market bonds as a viable alternative for investors ...
Q: How can one invest in bank loans ? Are there mutual funds or ETFs that invest in the area? A: As the economy improves, investors have shifted to riskier investments, such as stocks and junk bonds. Lately, more have taken an interest in ...
Sometimes it pays to look beyond the obvious when it comes to investing. That means adding some exotic investments to a portfolio laden with blue-chip stocks and Treasury bonds. Think platinum and pipelines.
Stocks and higher-yielding "junk" bonds have surged so much in recent months that bargains are getting difficult to find. At the same time, safer investments such as Treasury bonds and high-grade corporate issues have meager ...
Sovereign bond investors recently had to pay Germany for the privilege of lending to it. Yields on the safest non-sovereigns, investment grade corporate bonds, are setting new records in parsimony. So income investors looking for decent, ...
Stocks Surge Better-than-expected economic data caused investors to dump bonds in favor of riskier assets. The Dow Jones Industrials finished the week at 13232, up 2.4%, their best week since December, while the Nasdaq Composite rose 2.2% to ...
Before you load up on junk, give it the sniff test, so you don't end up with a smelly surprise. So far this year, mutual funds and exchange-traded funds investing in high-yield, or "junk," bonds have taken in more than $17 ...
When you "derisk," be sure you understand whether you are eradicating risk—or just replacing old risks with new ones. You have heard ad nauseam that investors have spent the past few years dumping U.S. stocks en masse for the ...
A growing sense of urgency is driving many investors to take reckless risks with their money. Even though they experienced the hazards of stock ownership firsthand in 2008, investors are venturing back into equities again. They've been ...
In my last column, I outlined a new approach to managing investment risk that I summed up this way: Never gamble unless you can afford to lose.
Is the bond bull market over? If so, how should investors adjust their portfolios? One of the most important reasons the U.S. economy and financial markets have stabilized since the financial crisis is that interest rates plunged. Thanks to ...
Presidential candidate Mitt Romney has gotten lots of attention for holding as much as $100 million in his individual retirement account. Less well known is that the account is also chockablock with complex private partnerships rather than ...
With high-grade municipal bonds offering meager yields, investors seeking an income jolt are embracing a slightly more exotic product known as "kicker" bonds.
Q: For the past 25 years, we have purchased $50 savings bonds for our children and grandchildren for their birthdays. The government has changed the rules and the bonds can only be purchased online. Why would the government do this? Do they ...
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LONDON—The U.K. government is looking to take advantage of its haven status by issuing perpetual bonds for the first time since the World War I, but tepid demand from pension funds could undo those plans.
After a six-month rally, U.S. stocks are getting pricier. Experts say investors should exercise caution. The Standard & Poor's 500-stock index gained 12% during the first three months of 2012, the best start to the year since 1998. After ...
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The bond king might be making a comeback. After suffering one of his worst performances ever in 2011, over the past three months, Bill Gross, manager of Pacific Investment Management Co.'s Total Return Fund, rode an aggressive bet on ...
Against what would appear to be insurmountable odds, and in the midst of a once-in-a-generation sovereign-debt debacle, the European corporate bond market is thriving. And according to industry experts, that is not at all surprising.
Robert Marcotte can't afford to play it safe anymore. With interest rates likely stuck near zero for nearly three more years, the 61-year-old retired telephone-company manager is about to ramp up his holdings of stocks and municipal ...
Altria Group, parent company of Philip Morris USA and its best-selling Marlboro cigarettes, has more than lived up to its reputation as a defensive investment—providing investors with stable returns and, importantly, a dividend yield of ...
At least one fear gauge shows that investors were more scared in 2011 than in the dark days of 2008. According to investment-research firm Morningstar, a portfolio of U.S. Treasurys with an average maturity of 20 years—the quintessential ...
Stable is nice, but it isn't perfect. Investors in "stable-value funds," which are bundles of bonds tied together with an insurance policy within a 401(k) retirement plan, have fared remarkably well in recent years. But rising ...
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Investors put a net $823 million into long-term mutual funds in the latest week, as increases in bonds and hybrid funds more than offset continued withdrawals from equities, according to the Investment Company Institute.
The nation's housing market has lately been showing signs of life, and investors have bid up home builders' stocks by an average of nearly 50% over the past three months. But in the case of Hovnanian Enterprises (HOV), which is up ...
The window is closing a bit further on one of the best deals for savers. Beginning Jan. 1, individuals will be able to buy only $5,000 in I Savings Bonds a year, down from $10,000 today—making it tougher to hold one of the last risk-free ...
NEW YORK (MarketWatch) — Portfolio diversification is fairly straightforward. Different kinds of assets — stocks and bonds, for example; maybe commodities and real estate as well — lower volatility and deliver more consistent returns than ...
A year ago, many experts said to avoid U.S. bonds, hold ample cash and stick with foreign stocks. Those turned out to be among the worst moves of a surprising investing year.
Stocks have generated more worry than gains this year—and for more than a decade. Yet slim yields on bonds and savings give stockholders little enticement to sell.
They were supposed to be the ultimate weapon for turbulent times: mutual funds with the freedom to buy any assets they want, anywhere in the world. But as investors have flocked to so-called go-anywhere funds this year, many have gone ...
Last year saw better returns for bonds than for stocks on average—and that shaped the comparative performance of target-date funds for retirement.
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Long-term mutual funds had estimated net inflows of $8 billion in the latest week, as investors continued to add money to bonds and hybrid funds, offsetting withdrawals from equities, according to the Investment Company Institute.
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Investors withdrew a record $3.43 billion from mutual funds that focus on high-yield bonds in the week ended Wednesday, according to Lipper, a unit of Thomson Reuters Corp.
Treasury bonds are dead. Long live Treasury bonds! Moody's Investors Service and Standard & Poor's this week said they might downgrade the credit rating of the U.S. if Congress doesn't raise the debt ceiling soon—a move ...
Municipal bonds faced two key tests this past week—and came out looking sturdy. The first was a spike in Italian government bond yields that culminated Wednesday with a global flight from risky assets. Muni prices rose, a sign that investors ...
How will 401(k) investors react to the latest blast of volatility in the markets? If the recent past is any guide, they will retreat into the apparent safety of cash, Treasury bonds and "stable value" mutual funds.
With the economy growing slowly and commodity prices well off their recent highs, inflation wouldn't seem to be an imminent threat. Yet investors are piling into inflation-protected bonds.
Long-term bond ETFs tend to move opposite stocks. All of the ETFs in the table below have an average duration of more than 10 years. Duration, measured in years, is used to determine a bond or bond fund's interest rate sensitivity by ...
While individual investors have been fleeing the stock market for months, some fund managers have been pushing them right back in. Among fund managers with the flexibility to invest in a mix of stocks, bonds and other assets, the trend has ...
Municipal bonds have had a rebirth since getting pummeled earlier this year, and the recent tumult in the financial markets has rekindled interest in an investment class with a tradition of safety.
NEW YORK—Ohio State University sold $500 million worth of 100-year bonds late Wednesday, becoming the first public university to issue a so-called "century" bond.
Investors in one of Main Street's hottest investment products may get an unexpected parcel this holiday season—a tax bill. Exchange-traded funds, which are baskets of securities that follow an asset class or sector, have been a hit for ...
As investors are putting their retirement savings into so-called self-directed individual retirement accounts, complaints about fraud in these accounts are on the rise, securities regulators say, and investors should carefully consider the ...
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It's been a tough year for bond-fund stars. Longtime outperformers in mutual-fund rankings Dan Fuss, co-portfolio manager of the Loomis Sayles Bond Fund at Loomis Sayles & Co, and Michael Hasenstab, portfolio manager of Templeton ...
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Long-term mutual funds had estimated buying of $7.31 billion in the latest week. That represented significant investment in bonds and foreign equity funds, which offset outflows from domestic equities, according to the Investment Company ...
High-yield bonds just suffered through their worst losing streak since 2008. It may be time for investors to buy. The Barclays Capital U.S. High-Yield Bond Total Return index dropped for 13 consecutive days ending June 20, losing a total of ...
It isn't easy picking investments when quality bonds offer meager yields, stocks seem bipolar and the richest economies are struggling to expand. But many 401(k) investors face an added challenge: choosing from a mutual-fund menu that ...
You've heard of black swans—events that are unthinkably rare, immensely important, and as unpredictable in advance as they are inevitable in hindsight. Now, with no one ruling out a default or downgrade of U.S. Treasury debt, investors ...
Is there no end to the contagion? This week, as the Italian government and Italian bonds collapsed over fears the country can't control its debt, everything else fell, too. Of the 45 national stock markets in the MSCI All Country World ...
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One bond king's recent stumble gives investors reason to question the outsize fees many are paying to mutual-fund managers—and to consider some new alternatives.
Money exited from long-term mutual funds for the third consecutive week, as investors pulled cash from equities and added to bonds and hybrid funds, according to estimates from the Investment Company Institute.
It's often said that the best defense is a good offense. Unfortunately, when it comes to mutual funds, many have developed an unpleasant reputation for not protecting shareholders in tough times.
The trading pattern that has dominated the markets for the past year could be breaking down—and that could spell opportunity for investors. After a disappointing payrolls report on Friday morning, investors poured out of stocks and into the ...
You wouldn't want to make a loan to someone without knowing what you will earn on the loan. But if you own mutual funds or exchange-traded funds, you might be doing exactly that.
Emerging-market bonds might appeal to the aggressive and the timid alike. The aggressive will like the 6.5% yield on the J.P. Morgan Emerging Market Bond Index. That's triple what investors get from 10-year government bonds issued by ...
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So you bet on rising rates. You loaded up on high-yield bonds, leveraged loans and short-term Treasurys in the belief that the U.S. economy was recovering fast enough for the Federal Reserve to consider raising interest rates sooner rather ...
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It's time for a flight from safety. The recent market maelstrom has sent investors fleeing to traditional safe havens such as Treasury bonds, recession-resistant stocks, Swiss francs and gold.
The latest bout of turmoil in the financial markets is a fresh headache for retirees relying on their savings to make ends meet. That's especially the case for the many older investors who have ventured into riskier stocks and bonds in ...
If you are a gold investor, you're probably quite pleased with yourself right now. It's been one of the best-performing investments this year.
Municipal bonds have been one of the top-performing asset classes in 2011. But the rally might not last much longer, advisers and strategists say.
BOSTON (MarketWatch) — Conventional investment wisdom for at least the last half century has been simple: Use stocks for growth and bonds for income.
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As Greece slips closer to default, some U.S. regulators and lawmakers are concerned about money-market mutual funds' exposure to European banks.
A volatile relationship may trigger a divorce. But volatile financial markets are playing a big role in the way couples split their assets. While their lawyers spar, a couple's retirement savings and other assets—cash, businesses, ...
SAN FRANCISCO (MarketWatch) — Every investment conference seems to have a magic word that reflects a broad, buzzing theme. At the Schwab IMPACT Conference in San Francisco this week, the magic word was “alternative” — which means that the ...
The Federal Reserve's latest move, known as Operation Twist, will involve selling $400 billion worth of its short-dated bonds and using those proceeds to purchase longer-term Treasurys.
Investors who have been loading up on "floating rate" mutual funds this year to capitalize on rising interest rates might be in for a surprise—even if rates rise.
There's nothing crummy about a Crummey trust—even in a period of higher exemptions for estate and gift taxes. The trusts, which got their name from a Methodist minister who won a fight with the Internal Revenue Service in the 1960s, are ...
With the debt markets in turmoil, where will the money come from to bail out troubled borrowers? If you're a mutual-fund investor, look in the mirror: The next bailout might come from you.
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In recent weeks, Pacific Investment Management Co. founder Bill Gross says he has "lost sleep" over an ill-timed bet on Treasurys.
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Those waiting for the Great Bond Selloff are starting to get antsy. For more than a year, many have argued that bonds are in a bubble, or at least very expensive. Despite that, they have remained popular.
Spooked by stocks and unfazed by the recent downgrade of U.S. debt, investors have turned to Treasurys as a safe haven. But are their moves inflating the risks in the broader bond market?
BOSTON (MarketWatch) — Treasurys are rallying, stocks are falling and there’s no shortage of opinion over whether such action is good for the most infamous of all securities — the junk bond.
Generating the most income in the safest fashion from a nest egg is the holy grail of retirement income planning. You obviously want your dollars to stretch as far as possible without taking on much risk.
It isn't easy buying stocks after the market craters, as it has recently. But the market has rarely looked so appealing in recent decades.
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Investors are getting juicier returns this year putting their money into a bond index fund instead of tapping the brains of many high-profile fund managers.
Send your prediction to crystalball@wsj.com by midnight EDT Sunday, with your full name, city, state and phone number. The first reader who gets it right will be named in next Saturday's paper.
How can you lower your portfolio's risk in a world of rolling government-debt crises? Start by taking a deep breath. Then, see if you need to do some tinkering—but not too much.
Grandma's gift of choice is going digital. Most paper forms of Series EE and I savings bonds won't be available for purchase after Dec. 31. The bonds will instead be issued in digital form through TreasuryDirect.gov. You can get a ...
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Lyle Fitterer, managing director and head of the tax-exempt fixed-income team at Wells Capital Management, is getting more cautious on the municipal bond market.
Has the endgame for bond investors begun? Since at least 2009, pundits and professional investors have been predicting that the three-decade-long bull market in bonds was about to end. So far they have consistently been proven wrong.
Few people ever want to be stuck in the middle. But in the bond world, that may be the perfect place to be, even if the secret of this strategy is already out.
When it comes to constructing the ideal portfolio, investors typically turn to the same building blocks: stocks, bonds and cash options like CDs. But that's so 2006. At a time of increasing global uncertainty, many are reconsidering ...
Investors turned their backs on risk during the most volatile stretch of the second quarter, and they aren’t showing signs of coming back soon.
Municipal-bond brokers are scrambling to document how they share information with retail investors in the wake of a regulator's request that they provide detailed explanations before making a trade.
Two years after the peak of the financial crisis, the federal government swooped in to stabilize a crucial part of the credit-union sector battered by losses on subprime mortgages.
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Long-term mutual funds had estimated inflows of $4.9 billion in the latest week, as investors added money to nearly all fund categories, led by taxable bonds, according to the Investment Company Institute.
Having grown more optimistic about the U.S. economy, some financial planners say bond investments may pose a bigger risk to investors in 2011 than stocks.
The Cassandras were wrong: Despite dire predictions, municipal bonds haven't hurtled off a cliff. But that doesn't mean they are a good buy now. The rally of the past four months has been driven mainly by forces that seem ripe for ...
SAN FRANCISCO (MarketWatch) -- A U.S. economic slowdown and lower interest rates are bad for financial-services companies, Goldman Sachs said Thursday.
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NEW YORK—A month-old mutual fund from J.P. Morgan Asset Management promises a spicy cocktail for muni-bond investors. The fund focuses 80% of its capital on tax-exempt municipal bonds. The spice: a 20% allocation for taxable bonds, credit ...
By Mark Gongloff And Jonathan Cheng Bonds and stocks continue to sing different tunes about the economy. After a disappointing employment report raised fresh worries about economic weakness and the risk of deflation, investors scrambled to ...
More than four months after the Build America Bonds program ended, many financial advisers are still touting the merits of these high-yielding bonds -- at least for now.
Although the cultural arts are deeply woven into in the fabric of New York City, they aren't immune to financing troubles in the wake of the subprime debt collapse.
While Federal Reserve Chairman Ben Bernanke said Wednesday that the central bank intends to hold short-term interest rates near zero, long-term rates are already inching up. That's bad news for bond investors – and worse for some ...

Ask the right questions before you hand over your money
A balanced portfolio can have a bigger impact on long-term performance than individual stock picking
Investing for retirement is more complicated than opening an IRA or maxing out your 401(k)
When choosing a stock mutual fund, consider performance, manager track record and cost before investing.
Even in times of interest rate uncertainty, a certificate of deposit (CD) can still be part of your cash strategy.
A new wedding trend trades "walking down the aisle" for a walk on the wild side.
Technology stocks have rebounded and are once again the darling of the market. Can the resurgence last?
Arends: That 60/40 portfolio of stocks and bonds your adviser is pushing might not work.
The defense contractor faces a tough enemy: potential cuts in defense.