As investors face the possibility of rising interest rates, many are seeking the right approach for the changing environment. We open this week with an article by PIMCO that explains the benefits of using unconstrained bond funds for today’s markets. Next, we take a look at credit reporting through a study commissioned by the Federal Trade Commission. According to the study, about 26% of consumers have identified at least one significant error in their credit report. We recommend you check your credit report at least once a year. We close with Doug Short’s comments on the sequester, or cut in government spending, which may occur at the end of this month. He takes an historical perspective on U.S. Defense spending and its effect on GDP.
An Unconstrained Approach To Bond Market Investing-
Here is an approach which can help investors maximize the risk-adjusted return potential of the global fixed income markets. At Day & Ennis we are using these types of funds in the fixed income part of the portfolio. This paper by PIMCO explains the benefits of an unconstrained bond fund, particularly in a rising interest rate environment. http://investments.pimco.com/insights/External%20Documents/PIMCO_Featured_Solution_An_Unconstrained_Approach_to_Bond_Market_Investing_PFS015.pdf
U.S. Agency Finds Significant Error In 26% Of Credit Reports-
A study by the Federal Trade Commission says 26% of consumers have identified at least one significant error in their credit report. Among those who successfully got their report corrected, 13% received an improved credit score. We recommend you check your credit report at least once a year. http://www.washingtonpost.com/business/economy/fact-checking-credit-reports/2013/02/12/6df3709a-7553-11e2-95e4-6148e45d7adb_story.html
Sequestration And The Possible Effect On The Economy- Doug Short gives us an historical prospective on U.S. defense spending and the effect on GDP. Sequestration refers to the automatic spending cuts to both discretionary and defense spending that may occur at the end of this month unless Congress acts to change the law. http://advisorperspectives.com/dshort/commentaries/Sequestration-National-Defense-130211.php
We hope you enjoy reading these articles along with us and that you find them informative. Please forward this to your friends and family.
John R. Day, Bill Ennis and Stephanie Davidson