World stocks extended gains and oil rebounded on Friday as upbeat data from China and the United States underscored an economic recovery, weighing on safe-haven government bonds and the low-yielding yen ...
For years, the most common tactic for U.S. investors in the bond market was to stick close to home, buying federal, state and corporate bonds. But now some are venturing halfway around the world in the search for higher returns ... The reason: Some nations now have interest rates that are far higher than they are in the U.S. Stable places such as South Korea, along with up-and-coming nations like Brazil, have manageable levels of debt (unlike many U.S. states and companies) but higher interest
Merriam-Webster defines “stampede” as “a wild headlong rush or flight of frightened animals.” A biological response by which herd animals avoid predators, the cruel irony of a stampede is that, regardless if it’s wild horses, wildebeests, or human beings, those running the fastest within the fray are often those most likely to end up getting hurt ... And while it’s more difficult to see a stampede in the investment world than out on the range, recent data regarding mutual fund flows
Unless you’ve been living in a mine, it would have been hard to miss gold’s most recent glittering run ... Increasingly, people who would have never considered the stuff as an investment are pondering whether to buy it. But those who haven’t yet figured out if they want to join the gold party might be surprised at the indicator some pros are looking to for the answer: the boring, not very glamorous 10-year Treasury bond ... In theory, the direction of both gold prices and Treasury yields
People who lived through the Great Depression were shaped thoroughly by the experience — so much so that many of them never gave up habits of extreme thrift, aversion to financial risk and even hoarding behavior ... As we begin the long climb out of the Great Recession, a question presents itself: How will this experience shape this generation’s minds and habits going forward? ... A pair of recent studies may shed some light. The cognitive effects of financial shocks are long-lasting — and
The declining value of the U.S. dollar, along with significant government intervention, will continue to bolster the economy in the short term, but the markets, and the economy, will become riskier when the world's central banks pull back ... Who's Talking: David Joy, Chief Market Strategist, RiverSource Investments for Ameriprise Financial ... The Gist: Investors will likely expect more growth from companies after the third quarter. In the meantime, a weak U.S. dollar will give certain
Savings rates are paltry ... Money-market funds pay 1% and bank accounts even less ... Commit to a five-year certificate of deposit and you might get 3% ... Stock dividends are laughable, especially considering the extra risk attached to them ... More than a quarter of America's 500 largest companies pay nothing ... The rest offer a median yield of 2% ... Against this backdrop, stocks yielding 16% are equal parts intriguing and suspicious ... Financial planners typically say not to count on