Broker Check

Scott’s Talking Points 6/8/15

| June 08, 2015
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By D. Scott Peterson  


Here I bring you my 10 talking points for the week. These are things that I think are important to note in the market. This also is way for my clients and readers to drill down and block out the background noise of the day to day media. A simple 10 point article for your enjoyment!   


1.  We believe the riskiest asset class this year is bonds.

2. When interest rates go up, bond values go down.

3. Bond mutual funds that do not have a maturity date are the most problematic.

4. Exposure to bonds should be reduced to a minimum and/or maturities sharply reduced.

5. There is no perfect investment that works in a given situation; allocations must be adjusted as conditions change.

6. Proper asset allocation is the most important factor affecting portfolio performance.

7. Cash or money market is a legit asset class during periods of market volatility or uncertainty.

8. Use this to park money so you can take advantage of opportunities.

9. There are plenty of dividend-paying stocks that are good substitutes for bonds.

10. Better yet, they will give you a good chance for capital appreciation.



Bonds are subject to market risk, credit risk, inflation risk and interest rate risks and loss of principal. If sold prior to maturity, investor may receive back less than originally invested.  Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

Diversification and asset allocation do not guarantee a profit nor protect against loss in a declining market. They are methods used to help manage risk.

Investing involves risk including the potential loss of principal. No strategy can assure success or protects against loss. Past performance is no guarantee of future results.

Investing in bond mutual funds involves risk, including the potential loss of principal invested.  Risks vary depending upon the strategy used by the fund as well as the sectors in which the fund invests.  When redeemed, shares may be worth more or less than the original amount invested.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations of any particular security, strategy or investment product for any individuals. Information contained herein has been obtained from sources believed to be reliable but not guaranteed. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. 

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