Recent Articles from Fred Taylor
What is the Debt Ceiling Crisis?
There has been a lot of news lately about the debt ceiling, but what exactly does that mean? According to Wikipedia, “In the United States, the debt ceiling or debt limit is a legislative limit on the amount of national debt that can be incurred by the United States Treasury, thus limiting how much money […]
4 Key Asset Allocation Strategies for 2023
We all know how painful 2022 was for investors. To put it in perspective, conservative balanced portfolios with 60% in equities and 40% in fixed income were down almost 20%. The more aggressive, all-equity growth portfolios were down over 30%. Even 20-year treasury bonds lost 30% in 2022. This carnage was caused primarily by the […]
7 Investment Strategies for 2023
In 1992 Queen Elizabeth was famous for saying “annus horribilis” when three of her four children’s marriages dissolved and Windsor Castle caught fire – a horrible year. The same could be said about 2022 for investors and investment strategies. A portfolio invested 60% in stocks and 40% in bonds was down double digits, one of […]
Finding the Silver Lining Amidst Rising Interest and Inflation Rates
Between bear markets in both stocks and bonds and mortgage rates doubling in 2022, is there any good news out there? Believe it or not, there is. Because of the massive rise in inflation this year, starting January 1, 2023, the Federal government is increasing Social Security payouts, raising 401k and IRA contribution limits, expanding […]
What Does a Recession Mean for Your Finances?
For some advisors, two negative quarters of Gross Domestic Product means we are in a recession. Other advisors are waiting for the National Bureau of Economic Research (NBER) to officially declare one. NBER defines a recession as “a significant decline in economic activity that is spread across the economy and lasts more than a few […]
Bear Market Rally or New Bull Market?
Investment returns, as of June 30th, 2022, marked the worst start for both the stock and bond markets in 50 years. Inflation, rising interest rates, negative GDP growth, de-globalization, political unrest, and the war in Ukraine hit investors simultaneously. There was nowhere to hide. Even defensive sectors like gold, TIPs, and REITs were negative in […]
Does an Inverted Yield Curve Portend a Recession?
The last time I wrote about the bond market was five years ago when interest rates were about to become inverted. When this happens, it simply means you can get a higher interest rate on a shorter maturity bond than on a longer maturity bond. For example, if you wanted to buy the 2-year Treasury […]
Playing Defense During Bear Markets
Bear markets are normal, albeit rare, reminders that financial markets don’t always go up. Without them, speculation gets out of control. During periods such as now, the markets must reset to reflect the current interest rate environment, latest corporate profit outlook, inflation expectations, and investor sentiment. Unfortunately, all these factors are proving to be major […]
Steps to Consider Now Toward Estate Planning
The Census Bureau reports the average age of widowhood in the United States is only 59 years old. With this being the case, many women should be prepared financially to live another 20-30 years after the death of their spouse. Tragically, I have three clients who unexpectedly lost their husbands to a heart attack, inoperable […]
Geopolitical Events and Effect on Markets
Like all Americans, I am incredibly sad and scared for both the Ukrainian people and, quite frankly, the Russian people. Russian President Vladimir Putin’s unprovoked, full-scale invasion of Ukraine has rocked the globe and has resulted in needless death and destruction. This war could have lasting consequences for investors in stock, bond, and commodity markets […]
How to Best Choose a Location to Retire
We have heard a lot about how the pandemic has caused Americans to reassess their careers, leading millions of workers to quit their jobs. But COVID-19 has also had an impact on older workers, who in many cases, have decided to leave the workforce altogether. According to research by the Federal Reserve Bank of St. […]
3 financial resolutions for 2022
Higher interest rates, inflation, continuing issues with COVID-19, and the pandemic’s potential impact on the economy will make 2022 difficult from a financial perspective. However, if you have a game plan, it will seem less daunting, particularly when it comes to your financial picture.