Displaying items by tag: income

Wednesday, 16 March 2022 20:01

Here is a Great Inflation Antidote

Many investors have moved off of REITs and they are trading well below their 200-day moving averages. This makes them a value proposition, particularly as volatility starts to rise. Uncertainty particularly around Ukraine and Russia is fueling volatility but its uncorrelated with REIT volatility which gives it a huge risk advantage on top of it all they are more robust to inflation. Two great REITs to consider with great value at the moment are Alexandria Real Estate Equities and Crown Castle International. These REITs have healthcare and telecom exposures respectively which are in a particularly attractive position as healthcare spending is a higher portion of budgets and 5G is exploding.


Finsum: It’s easy to see that alternatives should be seeing inflows given the volatility in traditional equity and bond markets.

Published in Eq: Real Estate
Wednesday, 16 March 2022 20:00

Why You should Be Interested in Active Bond Funds

2021 was a comeback year for active fixed Exchange Traded Funds. Driving this home was a huge set of inflows as they saw a tenth of inflows globally, many of these came from the US. That trend isn’t stopping as nearly 80% of investors are searching to expand that position in 2022. Many investors see active funds having an edge with global turmoil increasing, as Russia-Ukraine escalates, and there are many macro risks domestically. Additionally, investors are clamoring to buy more ESG ETFs in 2022 as this trend shows no signs of falling off.


Finsum: Markets were messy and pretty hard to predict in the aughts, but active management seems to have a leg up in picking tech growth as well as fixed income winners.

Published in Bonds: Total Market
Monday, 14 March 2022 20:45

The LIFE Act is Going to Boost Annuities

The 2019 Secure Act was THE critical piece of legislation for annuities in the 21st century, but that could change with the upcoming LIFE Act which is working its way to voting. Where the secure act made legal production of annuities easier and allowed them to be a part of retirement plans, the LIFE Act will allow annuities to be a 50% asset allocation by default from employers. Currently, the LIFE Act has strong bipartisan and posts a strong potential of passing, this would allow investors to double their baseline investment in annuities where it was previously capped at 25%.


Finsum: The ultra low rate environment has many investors more interested in turning to annuities for income than almost any other time before.

Published in Wealth Management
Monday, 07 March 2022 19:07

REITs are an All-Time Buy Right Now!

Financial markets are extremely volatile as of late and that's putting it lightly, but REITs might be perfectly insulated at this moment and a great option. One of the largest sources of volatility is Russia and Ukraine but real estate is a local business and a solid option for those looking to alternatives. Another source of market risk is inflation however, real estate generally benefits from inflation. House prices outpace it and fixed-rate financing means debtors pay back less over time. Real estate also has leased on a long-term basis and insulted to most short-term shocks, and is a safe haven from typical equity volatility. Finally, if more turmoil suppresses interest rates then this will increase demand for real estate moving forward.


Finsum: We see the huge outperformance potential for real estate because of how uncorrelated the rate of return is with the rest of the markets right now.

Published in Alternatives
Tuesday, 22 February 2022 21:19

How to Find Good Tax Efficient Income Right Now

Fixed-income investors are in the doldrums when it comes to today’s ultra low yield environment. Guaranteed income from CDs is just not high enough, and while bonds may be secure their value is at a valley. Laddering annuities is maybe the best strategy, but the questions are on duration. In a flat yield curve going for a short duration makes sense, and as the yield curve steepens moving to long-term contracts is more attractive. In today’s interest rate market, the goldilocks spot is around 5-years, it is a much higher return than shorter-term annuities and longer-term contracts tie your money up without much more of a return boost. The best part is you can integrate this annuity laddering strategy into IRAs and take advantage of all the tax solutions they bring to the table.


Finsum: It's critical to ladder the right duration depending on the current rate environment and given how much interest rate risk there is today it's more important than ever to be precise.

Published in Bonds: Total Market
Page 9 of 39

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top
We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…