We do not want to repeat the information in our market update, however, here is just a quick snapshot of what we are discussing about your portfolios right now.
Bonds are overall not generating return this year, and they are losing value since interest rates are so low. Interest rates are expected to rise in the future, which also has a negative effect on bonds.
So how can we get some income and stability for you in your portfolio?
- We can increase your risk and reduce the bonds.
- Use real estate, utilities and other types of investments for income.
- We can wait the cycle out.
We are also using balanced and multi strategy bond portfolios to help navigate this market.
Why not just stay in cash?
- Bonds pay monthly interest and have an opportunity to make money. Monthly interest is buying more shares while the bond price is down.
According to our research, the market looks positive for the next quarter, since there is consumer spending and pent up cash from not travelling and going out to restaurants. In other words, consumers have cash and they are spending money. Building infrastructure may affect the economy positively.
We post a market update every month, and you can find the most recent update on our website here: https://www.glebaandassociates.com/category/market-update/