Financial Exchange Blog

Barry Armstrong has more than 25 years of experience in the financial services industry and hosts WRKO's Financial Exchange program every weekday from 10 a.m. to noon. Barry also works with the independent financial professionals at Armstrong Advisory Group, which he founded himself, to serve individual investors and small businesses in New England. For the most up to date information on The Financial Exchange, as well as industry news and info, follow Barry on Twitter @BarryGArmstrong.

07/26/2013 - 1:40pm
By: Armstrong Advisory Group
Top Reasons to Do Estate Planning

The general purpose and use of these family revocable trusts are to help an individual avoid the costs associated with the probate process, reduce and in many cases eliminate federal and state estate taxes, and ensure the proper disposition and control of their assets to their family members following their demise.

1. To reduce and possibly eliminate federal and state estate taxes.
2. To protect your assets from the cost of long term care.
3. To not impoverish your spouse.
4. To ensure your assets go where and how you want them distributed.
5. To ensure...

06/20/2013 - 12:10pm
By: Armstrong Advisory Group
Does the negative relationship between stocks and interest rates always hold?

Does the negative relationship between stocks and interest rates always hold?  As explained previously, the correlation between stocks and bonds (and therefore interest rates) fluctuates significantly.  In the report by Deutsche Bank, strategist Francesco Curto examined the relationship between stocks and bonds in 1994.  In 1994, the Fed had kept rates at 3 percent for three years in order to help the economy recover from the savings and loan crisis.  Then the Fed unexpectedly raised the Fed funds rate by 25 basis points.   Consequently the bond market had its worst year since the late 1920s.  How did stocks perform...

06/07/2013 - 9:37am
By: Armstrong Advisory Group
Could Rising Interest Rates Hurt Stocks?

During the last week of May, the rate on the 10-year Treasury bond rose to 2.15 percent, the highest since April 2012. Since bonds are priced off of the Treasury spot rate curve (both in discounting the present value of the bonds’ future cash flows and in the spread relative to the spot rate curve ), it was not surprising that the value of the majority of bonds dropped at the same time. However, the stock market also gave back some of its double-digit gains for the year.

  • Why do investors think that higher interest rates are bad for stocks? First,...