He mentions William Bernstein..and I must say that after reading and listening to GOBS of retirement financial-survival advice..Dr. Bernstien's advice, makes the most overall sense, to me!
Thanks for the good ideas and advice on how to plan for risk in your portfolio. I especially like Mr. Cortazzo’s insight that with fixed income available at 5%, we can use a 60/40 portfolio to get 8% average return with all the volatility of an all-stock portfolio. Great way of looking at it; helped me clarify my ideas.
Inflation was about 5% on average during the last 12 months. 10-year treasury is at 4.3 %. How can you promote fixed income investments, if the real interest rate is still zero or even negative? Fixed income investments are interesting only, if the real interest is 2% or above. Otherwise, you just loose real money….. Good companies can increase prices and earnings in line or above the inflation. This means that a good stock with a P/E of 20 (e.g. 5% FCF rate). will be the much better investment for the next 10 years.
This is silly. 2022 was a bad year for equities, and a bad year for bonds and anything rate sensitive because of rapid and unexpected inflation and fed rate increases. So what, it happens. But that has already occurred. interest rates have likely either peaked or nearly peaked, so it's too late to "realign", and it would be foolish to design a portfolio to, as they say, fight the last war.
![Bond Bear Market on the Horizon [2023]](http://i.ytimg.com/vi/uoGdmrmqiBc/mqdefault.jpg)
Every interview on Wealthtrack is a treat, even when it is on boring dull fixed income.
Brilliant, informative & sensible presentation.
Thanks!
Mark Cortazzo is a beast,.......always gives rock-solid opinions and advice.
He mentions William Bernstein..and I must say that after reading and listening to GOBS of retirement financial-survival advice..Dr. Bernstien's advice, makes the most overall sense, to me!
Love this guy. Great ideas. Bonds aren’t supposed to be an income generator, they are a decline dampening agent.
Watching wealth track with Mark Cortazzo gives reasons why diversification is a key word in any investment.
Thanks for the good ideas and advice on how to plan for risk in your portfolio. I especially like Mr. Cortazzo’s insight that with fixed income available at 5%, we can use a 60/40 portfolio to get 8% average return with all the volatility of an all-stock portfolio. Great way of looking at it; helped me clarify my ideas.
Economic investigator Frank G Melbourne Australia is still watching this very informative content cheers Frank
He was funny when he said, "you have drift'. Things are drifting all right, lol.
If your fixed income allocation is to serve as a diversifier to stocks, don't take on duration and credit quality risk.
Inflation was about 5% on average during the last 12 months. 10-year treasury is at 4.3 %. How can you promote fixed income investments, if the real interest rate is still zero or even negative?
Fixed income investments are interesting only, if the real interest is 2% or above. Otherwise, you just loose real money…..
Good companies can increase prices and earnings in line or above the inflation. This means that a good stock with a P/E of 20 (e.g. 5% FCF rate). will be the much better investment for the next 10 years.
He is promoting 60:40 balanced index
@@junzhang2087Do you agree? My FA advised a different balance!
A big assumption is that bond rates are going to remain high
Peter Thiel has five billion USD$ in his Roth IRA, but we see no need for reform here in the US.
😇👑🌍🌎🌏💚
Thanks very much for WEALTHTRACK, Consuelo
This is silly. 2022 was a bad year for equities, and a bad year for bonds and anything rate sensitive because of rapid and unexpected inflation and fed rate increases. So what, it happens. But that has already occurred. interest rates have likely either peaked or nearly peaked, so it's too late to "realign", and it would be foolish to design a portfolio to, as they say, fight the last war.
The idea that USD hegemony will continue is rather naive.