AMJ Financial Blog

Tag Archive: bonds

Market Commentary – January 3, 2017

What a difference a year makes! At the start of 2016, investors were rather pessimistic and risk averse, preferring bonds to stocks. By the end of the year, they were quite optimistic and preferred stocks to bonds. In between, markets traveled a bumpy road. During January of last year, few investors imagined we would be… Read More

Market Commentary – July 5, 2016

Second quarter ended with a spectacular finale of Brexit-inspired market volatility. Investors typically welcome sharp market movements with about the same level of enthusiasm that canines show for fireworks. However, recent market agitations highlighted a key tenet of investing: Volatility often creates opportunity. Following an initial Brexit sell-off, global markets rebounded. Last Friday, Financial Times… Read More

The Markets- June 29, 2015

Not quite as popular as Branjelina and Kimye, ‘Grexit’ (short for Greek Exit) has gained traction as a nickname during the past few months. The British press appropriated a variation, Brexit, when they discovered that the Bank of England was researching the potential risks of renegotiating membership in the European Union, or possibly even leaving… Read More

The Market – June 8, 2015

If it looks like a bond, and it acts like a bond…oh…that’s the problem. Government bonds aren’t acting the way investors expect. Last week, 10-year U.S. Treasuries – which, typically, are thought to be safe and stable investments – suffered the biggest one-week sell off since June 2013, according to The Wall Street Journal. Treasuries… Read More

The Market – May 18, 2015

The U.S. Treasury market is a bit like a lake in the midst of a drought. All the action – fish, frogs, crawdads, and such – that was once hidden in the depths has become a lot more visible as the water shallows. For decades, traders and investors have turned to U.S. government debt –… Read More

The Market – May 11, 2015

Government bonds have gone wild! Sure, you might expect high-yield bonds to act unpredictably from time to time. That’s why they’re high-yield bonds. They don’t receive investment-grade ratings – BBB through AAA – from leading credit rating agencies because they’re not considered to be as creditworthy as investment grade bonds. U.S. Treasuries are a different… Read More

The Market – April 6, 2015

The global economy performed a bit like a Rube Goldberg contraption during the first quarter of 2015, although it’s doubtful many countries found humor as economic, financial, and political events triggered other economic, financial, and political events across the world. Europe heads into deflation “The whiff of deflation is everywhere,” reported The Economist early in… Read More

The Market – March 30, 2015

So, when is the Federal Reserve going to increase the rate for overnight borrowing? It’s a question that has plagued bond investors throughout the first quarter of 2015. In January, 10-year Treasury yields fell as low as 1.6 percent. Early in March, they rose to about 2.2 percent before falling back below 2.0 percent. The… Read More

The Market – March 23, 2015

Financial markets gave the Federal Reserve a standing ovation last week. At least, that was Barron’s interpretation. What did the Fed do to deserve it? “…the Fed did what everyone expected, signaling that it could raise interest rates at any meeting starting in June. Yet, Yellen and team still found a way to assure the… Read More