GYC Insights

Articles on real-life financial issues written to educate and enlighten.

Making Sense of Interest Rates

Many investors worry that the present market environment of rising interest rates will decrease equity valuations and therefore lead to relatively poor equity market performance over the next year or more. From a theoretical perspective, how do these rate hikes affect the market?

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What Should I Be Doing in These Uncertain Markets?

The lure of successful trading strategies is seductive, and looking at your portfolio shrink in value during a market downturn can be painful. But many times investors seeking to circumvent the pain or trying to get a leg up in their investments by temporarily shifting away from their long-term strategy will end up trading one source of anguish for another.

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Are Rising Rates a Slap in the Face to Bond Performance?

When the US Federal Reserve committed to raise interest rates in the face of rising inflation, investors and financial media like Bloomberg, Morningstar, and Yahoo Finance were quick to predict that bonds will underperform cash. Looking at over 30 years of International Government Bond data, we examine the validity of these forecasts.

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Do Bonds Still Work?

With the end of easy money policies from central banks around the world and expectations of rising interest rates, you may be wondering — Should bonds play a role in my investments? In this environment, why hold bonds at all?’ In addition to the wealth of existing peer reviewed academic evidence, a recent machine learning analysis by Vanguard may help to provide some insights.

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