FINSUM
Someone say bonds, James?
Is there a little something something between bonds and James Bond?
Well, bonds, at least, are expected back this year, according to schwab.com.
James? Filming a movie somewhere. Yeah, yeah; unreliable as ever.
Thing is, in the aftermath of an extended period of low yields -- not to mention last year’s to eagerly forget price dip, three tries at what’s on the precipice of a comeback: returns in the fixed income market, according to the site.
So, why so upbeat about returns? It goes like this:
Both nominally and in reality, starting yields are the highest in years;
The bulk of the Fed tightening cycle has wrapped up; and
A deceleration of Inflation’s likely
Following a prolonged dry spell, the bond market’s replete with yields that – compared to other investments – are appealing. A portfolio consisting of bonds; and high quality at that, like Treasuries, can translate -- without an excessively long period – around 4% to 5%.
Bonds, explained Ted Stephenson, professor of Accounting and finance at George Brown College, continue to be part of a diversified investment portfolio – an indispensable one at that, according to usnews.com.
"Regardless of correlation, bonds have done well versus stocks in six out of seven historical recessions. Ultimately, the correlation between stocks and bonds is not as important as relative performance."
Practice – management -- makes perfect
As Yogi Berra likely would say: if it wasn’t a challenge, what kind of challenge would it be?
And if he didn’t say it, one too many fastballs must have ricocheted off his glove and against his noggin.
Point is, what with escalating interest rates, an unpredictable economy and relentless inflation starring you in the kisser, it takes work to manage and grow your financial management business, according to forbes.com.
Well, do abet your efforts, to prepare for the first quarter of the new year, 16 members of Forbes Finance Council dispense advice for business leaders.
A few tips:
- Focus on liquidity
- When calculating the cost base, make space for contingencies
- Build up Your forecast by customer
- Consider your insurance model
- When it comes to resiliency planning, pay attention
Business plans, marketing strategies, operational processes and business technology aside, your company’s financial side calls for considerable effort, according to ceoworld.com. Not only that, your company’s longevity and expansion seemingly leans on a solid system of financial management.
You can incorporate quality financial management practices without a hitch in a few ways, including by leveraging the most effective financial software and tools; regularly managing your accounting records and creating seamless billing processes. What’s more, you can establish financial goals that are clear and monitor business performance.
Cerulli Survey: Institutional Investors Increasing Active Allocations
Based on Cerulli Associates' research analysis of mutual fund and exchange-traded product trends in January, institutional investors expect to increase allocations to active investment strategies. According to the data, while mutual funds lost $1.9 billion to start 2023, a few asset classes are generating positive inflows. For instance, taxable bond mutual funds added more than $15 billion of inflows during January, while municipal bond mutual funds added $7.7 billion during the month. This bucked the trend in 2022 in which outflows were $148.7 billion. The release from Cerulli stated, “The gap between active and passively managed funds hit new lows in December 2022; however, [the] Cerulli survey [shows], most institutional investors still want a majority of their portfolios to be actively managed. A noteworthy number of institutional investors indicate increasing their allocations to active strategies in equities (28%) and fixed income (20%).” The release also stated that “Although mutual funds closed 2022 on a “sour note,”—having dropped 4.5% in December—they have so far reversed course in 2023, with assets climbing 5.8% to $17.2 trillion.” The report noted that the data was based on a survey administrated in the second quarter of 2022.
Finsum:According to the results of a recent Cerulli Associates report, institutional investors plan to increase allocations to active strategies as taxable bond mutual funds and municipal bond mutual funds saw a combined $22.7 in inflows during January.
Which Bond ETFs Held Up Best in February?
U.S. government and corporate bond ETFs took a hit in February, as Treasury yields rose due to continuing fears over high inflation. According to a February 28 note from Lawrence Gillum, fixed income strategist for LPL Financial, “While bonds are back, 2023 may be bumpy. We don’t think we’ll see another year like 2022 anytime soon, but despite the higher starting yield levels, we could see periods of negative returns.” For instance, according to FactSet data, the Vanguard Total Bond Market ETF (BND) fell 2.7% last month, while the iShares 20+ Treasury Bond ETF (TLT) dropped 4.9% in February. When bond yields rise, prices of debt fall. However, shorter-duration Treasury bonds fared much better than longer-term U.S. debt last month as investors adjusted their rate expectations. For example, the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) posted a small return of 0.3% in February. In addition, two-year Treasury yields, ended February at 4.795%, up from 0.730% at the end of 2021 as higher yields have been attracting investors after rates surged last year.
Finsum:While longer-duration bond ETFs faltered last month due to continuing fears over inflation, shorter-duration Treasury bond ETFs such as the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) fared much better.
The Most Important Pages Every Advisor Website Should Have
If you’re an advisor and looking to generate more leads for your business, a strong website is a must. Its where potential clients can find you. Susan Theder, chief marketing, and experience officer at FMG Suite recently laid out the five most important pages every advisor website must have in an article for Financial Advisor Magazine. According to Theder, the most important page is the Home page. It gives people their first impression of you and should answer the following questions: Who do you serve, what problems do you solve, and what’s your visitor’s next step? Another must-have page is the About Us page as it’s the “place they go to meet you virtually.” But it shouldn’t look like a resume. Instead, it should include your story, why and how you got into the business, and information about your support staff. Next is the Services page, where you can list your service offerings, but you should write it from the client’s perspective. Include the challenges they are likely facing and outline how you will solve them. The fourth page is the Blog page, where you can share content to demonstrate your expertise. The fifth and final must-have page is the FAQ Page, where users can find answers to the most common questions a potential client may have.
Finsum:In a recent article for Financial Advisor Magazine, Susan Theder of FMG Suite laid out the top five pages an advisor website must have, including a home page, an about us page, a services page, a blog page, and an FAQ page.