There is a popular notion held, and spread, by commentators and advisors…
Stocks outperform bonds over the long run.
There is only one issue with this assumption; it may not be entirely accurate.
“…according to research by Ibbotson Associates, as reported in “USA Today” last year, bonds actually outperformed stocks over the past 30 years. Ibbotson’s bond index, comprised of a broad cross section of bonds, returned 11.03% per year on average over the previous 30 years, compared with a 10.98% return for the S&P 500 during the same period,” according to James A. Klotz, FMSbonds, Inc. President.
Our friends over at FMSbonds, Inc. discuss this matter in more detail. For more of the story, head over to the FMSbonds website.
We tend to consult with our friends over at FMSbonds, Inc. quite a bit here at KriKnows. Not only are they knowledgeable in municipal bonds, but their opinions are often interesting — at least to us.
Last month, James A. Klotz of FMSbonds took a look back to Meredith Whitney’s “infamous predictions of massive muni defaults” from a few years ago.
“’I expect multiple municipal defaults to trigger indiscriminate selling, which will prompt a federal response,’” Whitney wrote in a Nov. 3, 2010, Wall Street Journal op-ed piece.
Of course, Whitney’s prediction wasn’t entirely accurate.
“The selling did happen, of course. But investors who heeded her forecast sacrificed billions of dollars when prices rebounded. The defaults never happened, the federal government never got involved—in fact, prices soared as yields on municipal bonds tumbled to historic lows,” writes Klotz.
Klotz goes on to explain Whitney’s backlash a bit more in depth. Head over to the FMSbonds website to read on.
If you consult with the “municipal bonds specialists,” FMSBonds, Inc., you’ll find the most breaking and relevant muncipal bonds news around.
So, what is the latest news to leak from the FMS camp? Well, it seems like the municipal bond market may be getting a clean bill of health.
“A steady, if unspectacular stream of recent news items that indicate the municipal bond market – bashed almost gleefully by doomsayers a little more than two years ago – is getting healthy,” writes James A. Klotz, FMSBonds columnist.
Though, you should know that despite some promising signs, there are still a few threats that remain.
“It’s not all clear skies for state and local governments. Many still face underfunded pension obligations. Health-care costs may rise and there is a threat of cuts in federal aid. Rating agencies are expected to downgrade a number of issuers this year, and some efforts aimed at reducing or eliminating the tax benefit of municipal bonds remain,” writes Klotz.
Head over to FMSBonds.com for the complete story.
In today’s economy, there are constantly new market predictions virtually on a day-to-day basis. So, what is the next hot topic?
James A. Klotz of FMS Bonds, Inc. discusses “The Great Rotation” of investment dollars from bonds into stocks in 2013.
“The theory, as espoused by Bank of America, among many others, posits that persistent market volatility in the last decade, which prompted investors to seek refuge in the bond market and cash investments, would give way this year to more sustained growth in most economies.” writes Klotz.
“Moves by governments to address deficit spending along with a rise in consumer confidence will ultimately lead to a massive flow of investment dollars into equity funds from the safe haven of bonds.”
Head over to the FMS Bonds, Inc. website to read more on this coming rotation.
The surf in California is legendary, so our choice of metaphor is a logical, and easy choice.
The California financial surf is experiencing a significant swell.
“…as a result of the economic upturn and the passage of Proposition 30 in 2012, which temporarily raises income and sales taxes, revenues are forecast to hit $98 billion in 2014, following an estimated $95 billion in 2013. The State Department of Finance projects small surpluses through 2017, its normal five-year forecasting period,” writes Jay H. Abrams, FMS Bonds, Inc. Chief Municipal Credit Analyst.
You can read the whole story and learn more about the present and future boom of California finances here.
As the old adage goes, “Anything you can do, I can do better.”
Does that same famous phrase hold true for investments?
Lucky for us, rplan has provided us with an infographic to help tackle this very topic. So, who comes out the winner? Click and find out.
Sorry, no spoilers here…
It seems like every holiday is a reason for some type of wide-scale sale to lure consumers in.
Looking for a new home theater system? 5o percent off.
A night out on the town? Up to 70 percent off (thank you, Groupon).
A new puppy? Well, that may be a little more difficult to buy.
Even on massive sale days, there are still a few things that you might not be able to get too easily.
It’s a tumultuous time in America right now as a complete overhaul of U.S. gun laws are being called for; however, there are still a few things harder to buy than a gun — including those fluffy little pups.
Quentin Fottrell of MarketWatch has put together a list of five things that are more difficult to buy than a gun at present. So, what are they?
Read on to find out.
Source: Yahoo! Finance
Just like Santa, they only come around once a year.
No, we’re not talking about the Easter Bunny…
Some of us may use tax-filing software like Turbo Tax to file those pesky annual obligations, but there are also those of us who place our fiscal trust in another individual. Naturally, one may express some concern when it comes to allowing another to take on their responsibilities. And this concern may hold some water, according to CNBC.com writer, Mark Koba.
“…the IRS doesn’t have the authority to regulate hundreds of thousands of non-certified public accountant tax preparers and force them to pass exams and complete continuing education programs in order to do returns.”
So, what does this all mean?
Well, in other words, that person that you hired to file your taxes — you know, the one you assumed had all of the qualifications necessary to adequately handle your assets — well, he or she may not actually have those qualifications after all.
Now, don’t rush to Best Buy or Staples just yet to purchase this year’s version of Turbo Tax software.
“Most certified public accountants and financial planners already have the ID and training. And anyone who’s not a CPA filing tax returns on behalf of a taxpayer is required to obtain a tax ID number for tracking purposes. But they currently don’t have to take any qualification exams or courses to call themselves tax preparers,” writes Koba.
Though the IRS doesn’t have a program in place to ensure all tax-prepares have taken exams and courses to have the ability to label themselves as such, some may still be qualified to handle your taxes. Most tax-preparers have accounting background of some kind, but it doesn’t hurt to ask your tax-preparer if he or she has taken qualification exams and courses.
It’s always better to be safe than sorry.
Before you visit us for a financial consultation, you may want to see exactly how we operate here at Krinos. Take a look at this YouTube office feature for a peek inside our offices, and to see just why you should come to us for your financial preparations.