Veteran fund manager Bill Miller leaves Legg Mason after 35 years

Legg Mason fund manager Bill Miller will leave the firm after 35 years, the Baltimore-based investment company said on Thursday. One of the gurus of the actively managed mutual fund age calling it quits. Was he forced out due to continued underperformance and an erosion of assets under management? Another signal that actively managed funds […]

Louise Yamada says be careful -“Bear Claw” will strike the market again

Much respect for her technical expertise from my days at Smith Barney

‘Bear claw’ will strike the market again: Louise Yamada Amanda Diaz | @CNBCDiaz Louise Yamada has a strong message for investors: Don’t get complacent. The markets have been in rally mode since the start of the fourth quarter, with the S&P 500 and Dow Jones industrial average each surging more than 5 percent. Both indices […]

“DaVinci Wealth Radio – Is your Bond Portfolio Safe – Original airdate July 18, 2015”
by Darren Vilardo

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DaVinci Wealth Radio – Original airdate July 18, 2015 “Is your Bond Portfolio Safe?”

KQNA 1130 am and 99.9 fm in Northern Arizona

Is Your Bond Portfolio “Safe” -Where to hide when rates rise

  1. Could this be you… You lost money in 2000-2002 or 2008, and your advisor said – let’s reduce your exposure to stocks and give you more bonds, as a safe alternative. Perhaps you opted for a more conservative portfolio at retirement—less stocks, more bonds- again with the idea that the bonds are “safe”
  2. Remember the 16,17, 18% mortgage rates, CD’s paying 10, 11, 12% or more –early `1980’s and we have been in a declining rate environment ever since, and given the inverse relationship of prices to rates, thus we have been in a bull market for bonds for the last 30 years. With interest rates at just about ZERO-That has reversed – and as rates begin to rise, bond values will fall- how much?
  3. Duration; A measure of a bond’s or bond portfolio sensitivity to interest rate changes—Not sure, call us, we can find out, we can stress test your portfolio
  4. Local competitor advertising bonds, 7% coupon on a 30 year bond, 7% YTM, duration about 12.52, meaning, a 1 percent increase in interest rates will result in an approximate 12.52% loss in value. OUCH!
  5. A bond proxy with no principal risk. FIA – not for income, but for a return similar to a bond over time, with no interest rate risk. Gains are locked in and never at risk
  6. Variety of indexes based on various asset classes- global stocks and bonds, US stocks, dividend stocks and bonds, value stocks and bonds,
  7. Different carriers offer different crediting mechanisms.
  8. Interesting and creative way to offer return in a low return environment and eliminate principal risk inherent in a bond portfolio in a rising interest rate environment.

 

The Truth about Mutual Funds~ What Wall Street Doesn’t want you to know!

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Date: January 13, 2016
Time: 10:00 a.m.
Event: The Truth About Mutual Funds - What Wall Street Doesn't Want You to Know
Topic: The Truth About Mutual Funds
Sponsor: DaVinci Wealth
(928) 237-3411
Venue: Adult Center of Prescott
Location: 1280 East Rosser Street
Prescott, AZ 86301
Public: Public
Registration: Click here to register.
More Info: Click here for more information.