Describing the impact of increases to 30-year Treasury bonds on bond funds and Wealth E&P’s DSI Portfolio
August 16, 2021
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the financial markets this past week. My name is Helen “Cokie” Cox, and I am a partner at Wealth E&P and work as a Wealth Advisor.
I want to share with you that indicators over the last week are all up across the board, from the DOW, S&P 500, the NASDAQ, and including the U.S. 30 Year Treasury Yield. Why is this important?
We’re seeing treasury yields tick up and almost double from the lows of last year in 2020, going from 1% to today’s 2% (which is by the way, not enough to keep in pace with inflation). As we see those bond yields tick up, you will see bond values (a.k.a. bond funds) decline in value. Most investors who are seeking a flight to quality right now do not understand this “yin and yang” between yields rising and bond prices falling.
Compare that with Wealth E&P’s Diversified Strategic Income (DSI) fund, which is up a little over 3% year-to-date in comparison with that of AGG or the Barclays Aggregate Bond Fund; that fund is actually off-point 8.4% year-to-date.
If you have any questions for us about DSI, if you have any thoughts on your investment portfolio, if you want a risk profile, or if you would like a retirement projection, please feel free to reach out or visit www.wealthep.com. Otherwise, stay tuned for our next Market Minute next week!
At Wealth Enhancement & Preservation, we are here to serve as your financial advisor and source of support in the Alpharetta, GA, Cartersville, GA, and Charleston, SC areas. Our advisors are dedicated to simplifying the complexities of the financial world and as your advocate, we strive to learn about your most valued goals and dreams. From individual investors to entrepreneurs, our services are designed for your success.