On January 31, 2013, the yield on the 10-year Treasury bond stood at 2.00 percent, an increase of 62 basis points (0.62 percent) since the low hit in July 2012. However, the yield remains much lower than the 10-year average of 3.70 percent. With the December Core Consumer Price Index rising 1.9 percent year-over-year, inflation-adjusted bonds for the next five years are trading at a negative real yield. Yet, inflows into fixed income investment vehicles continue to outpace inflows into stock investment vehicles (which have seen net outflows since 2007). With bonds having experienced...
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Barry Armstrong has more than 25 years of experience in the financial services industry and hosts WRKO's Financial Exchange program every weekday from 9 a.m. to 11 a.m. 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.
Myth: Social Security will provide most of the income you need in retirement.
Fact: It's likely that Social Security will provide a smaller portion of retirement income than you expect. There's no doubt about it--Social Security is an important source of retirement income for most Americans. According to the Social Security Administration, more than nine out of ten individuals age 65 and older receive Social Security benefits. But it may be unwise to rely too heavily on Social Security, because to keep the system solvent, some changes will have to be made to it. The younger and wealthier you are,...
The Utility Sector
In 2012 the two worst performing sectors of the S&P 500 Index were utilities and energy with both sectors underperforming the index by over 10 percent. With the S&P 500 obtaining a total return of approximately 13 percent in 2012, underperformance by the utility sector was not too surprising. This is because the utility sector is viewed as consisting of companies that provide basic essentials that are largely immune to the ebbs and flows of the overall economy. With this belief the utility sector is thought to underperform during bull markets and outperform during bear markets. Yet, perhaps...
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