@theMarket: Say It Isn't SoBy Bill Schmick,
04:37PM / Friday, June 14, 2013 | |
So far June is playing out as expected. Stocks are see-sawing in a trading range that is driving day traders crazy. Hopefully, you are not one of them.
This week was almost a carbon copy of last week. For two weeks in a row the averages tested the 1,600 level on the S&P 500 Index and then bounced higher. That was also the level where technicians predicted the market would find support (at what is called the 50-day moving average).
Don't worry; I'm not going to get all technical on you. It is sufficient to note that buyers stepped in at the same level that they did last week. And that is understandable since there really is no reason to go much lower than that. I
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The Independent Investor: A Taste of Things to ComeBy Bill Schmick,
04:34PM / Thursday, June 13, 2013 | |
If you are a bond holder, the last few weeks may have come as a shock. Ever since the Fed raised the possibility of tapering their stimulus program, interest rates have spiked higher. For the first time in years, bondholders actually saw bond prices decline. Get used to it.
If you are a baby boomer, the price declines in all things that yield interest or income since May 22 might have you wondering what happened to your "safe" investments. All our professional lives we were told that bonds were "safe" for "conservative" investors, widows and orphans and for those among us that find the stock market too risky.
That was sage advice, if somewhat
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The Independent Investor: Will the Fed Falter?By Bill Schmick,
10:06AM / Friday, June 07, 2013 | |
As we enter the fifth year of the Federal Reserve Bank's grand experiment to save our economy, doubts are beginning to surface. After a wonderful run in the financial markets, investors are concerned that the Fed is planning to once again slow their stimulus program. That would be a mistake.
To understand why, just recall the ups and downs of the economy and stock market over these same five years. The first attempt at jump-starting the economy by the Fed occurred in late November 2008. The Fed started buying $600 billion in mortgage backed securities in an effort to inject liquidity into financial markets frozen with fear. It worked. By March 2009, it held $1.75 0 Comments
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@theMarket: Rising Interest Rates Spook MarketsBy Bill Schmick,
03:24AM / Saturday, June 01, 2013 | |
Over the last month, the interest rate on a 10-year, U.S. Treasury note has risen half a point. That may not sound like much in a market that has seen nothing but declines in Treasury yields for years, but investors fear it is simply the start of something big.
By now readers should know that we are in the ninth inning of a thirty year bull market in U.S. Treasury bonds. Everyone (including me) has been warning investors to liquidate their Treasury bond holdings. It is a case of when rates will rise (not if). No one knows exactly when that will happen, but why wait around until they do?
But many bond investors have stubbornly refused to listen. They are driven by fear. They are
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The Independent Investor: Retirement, Who Can Afford It?By Bill Schmick,
03:09PM / Friday, May 31, 2013 | |
Most Americans' retirement savings are under $25,000. That's old news. The new news is that with Social Security in jeopardy, medical costs skyrocketing and the chances of living longer better than ever, how do you expect to retire in the years ahead?
The short answer is most of us won't. But no matter how long you intend to remain on the job, at some point your legs, knees, back or brain will give out, whether you like it or not. For many baby boomers that time is right now, just when the politicians are telling us the country can’t afford to continue funding Social Security and Medicare. It isn't fair but those are the facts.
Honestly, this boomer
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| Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com Visit www.afewdollarsmore.com for more of Bill’s insights. |
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