Value Investing and Tolerating Pain

So you want to be a value investor, like the great Warren Buffett. A worthy goal, to be sure. But before going down that road you may want to ask yourself the following question: What is my tolerance for pain? You read that word correctly: pain. To be a great value investor, or any investor […]

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You just bought a house. If you’re like most Americans, it will soon become the largest component of your net worth, and only increase as a percentage over time. Naturally, you would like to see it go up. But by how much? Predicting future home prices is a difficult a game, made complicated by the […]

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U.S. Mortgage Rates have risen for 9 consecutive weeks, hitting their highest levels since January 2014. Source Data: Freddie Mac That certainly seems like a sharp increase, but is 4.46% high? Only when compared to recent history, which includes the all-time low in yields from November 2012 (3.31%). In a historical context, mortgage rates today […]

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At 2.9%, the 10-Year Treasury yield is near its highest level in the past 4 years. At the current rate of inflation (2.2% CPI in the past year), this translates into a real yield of 0.7% (real yield = nominal yield minus inflation). Is such a real yield good or bad value for Treasury bond […]

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Is Cash No Longer Trash?

Short-term bond yields (1-month through 3-years) are hitting their highest levels in over 9 years. Why? The market (Fed Funds Futures) is expecting the Federal Reserve to hike rates 3 more times in 2018: a 25 basis point move in March, a 25 basis point move in June, and a 25 basis point move in […]