lebanon vineyard with tractor

What will a Middle East war do to your costs and prices?

Bonds and Risk: Expect fuel costs to be up, interest costs down

Farmers are caught in a developing cost squeeze. Global oil costs are threatening to balloon from about US$80 today to over US$100 per barrel, which would be a 25 per cent leap. On the other hand, interest rates in the U.S. and Canada are scheduled to decline by as much as 1.5 per cent by […] Read more

Stocks do pay more than bonds, for those of us prepared to manage the pain and suffering stocks can wreak en route to that payoff.

What good are bonds?

Bonds and Risk: The price for the greater security bonds provide is that they do pay less on an historical basis compared to stocks

Bonds have long been scorned by investors lured by the seemingly higher returns of stocks. To be honest, on a historical basis, comparing returns over decades, stocks do pay more than bonds — but those stocks pull off this feat with much more pain and suffering. With the higher reward goes the higher risk. For […] Read more


Using annuities for an income stream

Guarding Wealth: They’re rock solid investments and eliminate market risk, but annuities are not cheap

Annuities are life insurance running in reverse. Rather than paying a premium for benefit at the death of the insured, an annuity stars with a lump sum and pays out income until the death of the person getting the money, the “annuitant” in annuity-speak. Payments will sometimes last longer than a lifetime, if there are […] Read more

stock market display

Analysts say bond markets may be foretelling bad news

Guarding Wealth: Economic trouble ahead if government bond long yields fall below shorts

From the back rooms of bond research departments comes the disheartening news that the yield curve for U.S. Treasury bonds is flattening and could invert next year, causing a kink where rates rise for a while and then drop. Somewhere between one day and 30 years, which is the usual span of the curve, the […] Read more


Guarding Wealth: Signs of future risk in the stock market

Guarding Wealth: Signs of future risk in the stock market

U.S. government initiatives are raising returns on government and corporate bonds

In the early days of the Clinton administration, Democratic Party strategist James Carville opined that, after death, “I’d like to come back as the bond market. That way, I could intimidate everybody.” Bond prices determine bond yields and yields determine the weight of public debt — how fast taxes can pay it down, how affordable […] Read more

Guarding Wealth: Keeping your financial portfolio stable

Guarding Wealth: Keeping your financial portfolio stable

How much risk do you want in your portfolio, and will risk bring you higher returns?

Choosing stocks and bonds is in some ways like picking the petals off a daisy. The choice: will it be regular income or capital gains (hopefully)? Some investment assets pay regular income. In this category are conventional bonds that promise annual or semi-annual interest payments and dividend-paying stocks that make no firm promises but that […] Read more


Guarding Wealth: Changes ahead for 2017

Guarding Wealth: Changes ahead for 2017

Rising interest rates and the Trump Effect 
bring uncertainties in the New Year

If investing were easy, we’d all be rich. Today, capital markets have many new uncertainties. Top of the list: the Trump Effect. That is, what the new President may do after his inauguration on January 20. Also worrisome is where Europe is going if other members of the EU follow the United Kingdom out of […] Read more

Magnifying glass on newspaper

Guarding Wealth: Canadian interest rates to rise

But don’t hold your breath — any big rate moves are at least 18 months ahead

To quote the most recent winner of the Nobel Prize for literature, Bob Dylan, “the times, they are a-changin’.” In capital markets, the U.S. Federal Reserve Board is likely to raise the interest rate it charges banks to borrow money overnight to maintain reserves — a key indicator for all other interest rates in the economy. This increase […] Read more



Guarding Wealth: Are bonds the best bet for you?

Guarding Wealth: Are bonds the best bet for you?

Four secrets to buying bonds for your portfolio

Stocks flourish on good company news, a bit of inflation to push up prices, moderate growth in corporate earnings, and the optimism of investors looking forward to rising incomes and climbing profits. Bonds, on the other hand, are for pessimists. As economic growth slows, the demand for loans declines. Inflation subsides. In this atmosphere, bonds […] Read more