Bond. James Bond.<\/p>\n
If your clients had invested in the latest installment of the James Bond series, the $1 billion-plus grossing \u201cSkyfall,\u201d they would have a much better return on their investment than what they\u2019ll get in the U.S. bond market this year.<\/p>\n
That\u2019s the word from investment analysts (without the James Bond reference), so if your clients are poised to bet on a strengthening American economy, they\u2019ll get out of bonds and into stocks, according to a story in The New York Times<\/em>. (http:\/\/tinyurl.com\/aq37k7a<\/a>)<\/p>\n Historic run<\/strong><\/p>\n When the U.S. economy turned sour in 2006 and went into recession in 2008, Investors jumped into the relative safety of the bond market with both feet. Indeed, The Times<\/em> reports, the percentage of personal investments in bonds increased to 26 percent last year from 14 five years ago.<\/p>\n When the move to bonds began in earnest in 2008, however, the S&P 500 stock index ended the year up more than 13 percent. Clearly, the run on the bond market was driven by fear about the overall economy and not just one segment of it.<\/p>\n LPL market strategist Anthony Valeri, who isn\u2019t betting on swift economic growth this year, gives AdvisorOne other reasons to get out of bonds in 2013: European debt concerns and a market-friendly Federal Reserve, which leads to bond price increases and lower yields. (http:\/\/tinyurl.com\/atzkc4m<\/a>)<\/p>\n Stock the cupboard<\/strong><\/p>\n The editors at Kiplinger<\/em> are bullish on the stock market, saying it has as good chance of gaining 7 percent during 2013 \u2014 with dividends adding another 2 percentage points. (http:\/\/tinyurl.com\/bytlavc<\/a>) If correct, that means clients could see the S&P 500 gain some 200 points this year. In addition, the Dow would rise about 1,000 points.<\/p>\n The Times<\/em> reports that surveys of hedge funds by Bank of America found that professional investors already are prepared for a shift into the stock market, allocating more of their portfolios into stocks than at any time since 2006. And 12 out of 13 bank strategists the Birinyi Associates spoke to expect the stock market to rise in 2013.<\/p>\n Bound to bonds<\/strong><\/p>\n Gary Shilling, for one, isn\u2019t giving up on bonds. President of economic consulting company A. Gary Shilling & Co., Shilling has advocated bonds for three decades. He told CNBC<\/em> (http:\/\/www.cnbc.com\/id\/100339419<\/a>) he doesn\u2019t believe the stock market can keep up its four-year rally and that another recession is a possibility. He advocates your clients spend some money buying Treasury securities as a hedge against a stock market downturn.<\/p>\n Schilling thinks stocks could be hurt by a global recession, which hurts revenue and thus earnings; companies have cut to the bone, making their profit margins as good as they\u2019re going to get; and a strong U.S. dollar will hurt companies\u2019 foreign profits and overseas operating expenses. Finally, he believes the housing market has excess inventory \u2014 as much as 1.9 million unoccupied houses \u2014 that will continue to depress prices in large swaths of the country.<\/p>\n The bottom line with any investment strategy is that a sound, diversified portfolio will give your clients the best of both worlds \u2014 security and growth. And they won\u2019t need James Bond to come to their rescue.<\/p>\n We hope this information was useful to you and helps your clients and their families. If you have a specific case or a question, don\u2019t hesitate to call our office.<\/p>\n Click here<\/a> for PDF version of article.<\/p>\n","protected":false},"excerpt":{"rendered":" Bond. James Bond. If your clients had invested in the latest installment of the James Bond series, the $1 billion-plus grossing \u201cSkyfall,\u201d they would have a much better return on their investment than what they\u2019ll get in the U.S. bond market this year. That\u2019s the word from investment analysts (without the James Bond reference), so… Read More »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[179],"tags":[],"class_list":["post-169","post","type-post","status-publish","format-standard","hentry","category-investments"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caassetprotection.com\/blog\/wp-json\/wp\/v2\/posts\/169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.caassetprotection.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caassetprotection.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caassetprotection.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caassetprotection.com\/blog\/wp-json\/wp\/v2\/comments?post=169"}],"version-history":[{"count":1,"href":"https:\/\/www.caassetprotection.com\/blog\/wp-json\/wp\/v2\/posts\/169\/revisions"}],"predecessor-version":[{"id":635,"href":"https:\/\/www.caassetprotection.com\/blog\/wp-json\/wp\/v2\/posts\/169\/revisions\/635"}],"wp:attachment":[{"href":"https:\/\/www.caassetprotection.com\/blog\/wp-json\/wp\/v2\/media?parent=169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caassetprotection.com\/blog\/wp-json\/wp\/v2\/categories?post=169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caassetprotection.com\/blog\/wp-json\/wp\/v2\/tags?post=169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}