- Created on Tuesday, 03 December 2013 08:53
This is a question you could soon begin asking as a recent rise in interest rates contributed to price declines in many bond funds. News the Federal Reserve feels comfortable enough with the strength and state of our economy to consider a change in current monetary policy is, without doubt, a positive development. Unfortunately, for some bond investors, good news may be bad news!
Bond prices and yields have an inverse relationship, meaning they move in opposite directions. This means as yields (interest rates) rise, bond prices (values) can fall. Many investors – driven by fear, the need for income, increasing underweight allocations, or other factors – have invested heavily in bonds. Over the past five years, this demand has helped drive bond prices higher, lowering yields and subjecting many investors to the often ignored or forgotten risks associated with these investments, one of which is "interest rate risk".
"Interest rate risk" is a term used to describe how an investment's value will change due to an increase or decrease in interest rates. As a simple example: a bond yielding 4 percent is more valuable to investors if interest rates fall to 2 percent and is less valuable to investors if interest rates rise to 6 percent. This is because their fixed interest income would either be greater than or less than what a new investor would receive purchasing a bond at current rates. Interest rate risk affects all bondholders, but typically bonds with longer maturities and/or lower yields are most impacted.
- Created on Tuesday, 03 December 2013 08:40
Who'd ever think that a black kid from South-Central Los Angeles could grow up to become the personal photographer of a Republican President of the United States? But that's precisely the unlikely career path enjoyed by Eric Draper, who served as head White House shutterbug from 2001-09.
How did he get the job? Well, after covering the 2000 campaign for the Associated Press, he was invited by George Bush to a Christmas party at the Texas governor's mansion. Taking a page out of the President-elect's own playbook, Eric summoned up the gumption while shaking his hand and looking him straight in the eye to paraphrase one of his popular stump-speech refrains: "I want to be your personal photographer."
Bush took the inquiry seriously, and hired Eric a week later, after closely examining his portfolio. And over the next eight years, Draper would be a constant companion and an eyewitness to history, accompanying the Chief Executive on trips to 70 countries and 49 states.
- Created on Monday, 02 December 2013 11:02
Top Ten DVD List for Dec. 3, 2013
"The Jack Ryan Collection"
"30 for 30 Gift Set Collection: Season Two, Volume One"
"Bruce Weber: The Film Collection"
- Created on Thursday, 28 November 2013 09:28
BIG BUDGET FILMS
"Frozen" (PG for action and mild rude humor) Disney animated adventure about a fearless princess (Kristen Bell) who embarks on an epic journey with a gruff mountain man (Josh Gad) in order to reverse the curse of eternal winter accidentally inflicted upon the kingdom by her queen-to-be sister (Idina Menzel) with cryogenic powers. Voice cast includes Ciaran Hinds, Jonathan Groff and Edie McClurg.
"Homefront" (R for graphic violence, drug use, pervasive profanity and brief sexuality) Sly Stallone wrote the screenplay for this adaptation of the Chuck Logan novel of the same name about a DEA Agent (Jason Statham) who retires to a quiet town for the sake of his family only to have their lives turned upside-down by a ruthless meth dealer (James Franco). With Winona Ryder, Kate Bosworth, Izabela Vidovic and Omar Benson Miller.
"Oldboy" (R for nudity, profanity, graphic sexuality, brutal violence and disturbing images) Spike Lee directed this remake of the Korean revenge thriller revolving around an advertising exec's (Josh Brolin) quest for vengeance after being kidnapped and held hostage for 20 years. With Samuel L. Jackson, Elizabeth Olsen, Sharlto Copley and Michael Imperioli.
- Created on Wednesday, 27 November 2013 11:42
It's that time of the year again when we look forward to spending time with family and friends, reflecting on the past year and looking forward to the new one. Some may feel that the year has been a total failure and hope and pray that the new year holds more for them. Others will simply feel blessed and fortunate that they have been allowed to see another year.
Everyone should realize that there is always something or someone to be thankful for, no matter how bad life gets them down at times. At Thanksgiving in particular, we should not complain about what we don't have or should have; just be thankful for what we do have, no matter how much or how little.
Don't be concerned about what you didn't accomplish in the past year; be thankful for what you did accomplish and look forward to what you will accomplish in the coming year.