The Cabot Advisor Blog

Fixed Income

Fixed-Income Strategy Update

In the 1997 film, As Good as it Gets, Jack Nicholson plays the role of Melvin Udall, a mean and cranky best-selling novelist who also suffers from obsessive-compulsive disorder. In the scene from which the movie get its title, a visibly upset Nicholson walks through a crowded waiting room at his psychiatrist’s office, suddenly stops, […]

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Fixed-Income Review & Outlook for 2017

As we turn the page on 2016, we look back on what was an unusually wild ride for fixed income markets.  The year began with the price of oil declining to $26 a barrel, a level not seen in more than a decade. Given the high level of debt outstanding connected to the energy industry, […]

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MORNINGSTAR MARKET SNAPSHOT

By Ellie Ismailidou and Barbara Kollmeyer, MarketWatch U.S. stocks pared early losses but were still below the records set a day earlier, as the dollar weakened against most major currencies and fresh consumer-price data showed U.S. inflation remains tepid. It seems like “Fed officials are trying to tell the market that [a rate hike in] […]

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Why Fixed Income?

The most common rationale for allocating a portion of your investment portfolio to bonds is quite simple: to protect your principal and earn income. In addition, bonds can mitigate portfolio losses during times of equity market declines. Why an active approach to fixed income investing? Trillions of dollars are benchmarked against the Barclays U.S. Aggregate […]

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The Value of Income

Why invest in bonds?  Our fixed income portfolio manager seems to get this question regularly, especially in this current low-interest-rate environment.  There are three fundamental reasons we invest in fixed income securities. To preserve capital To protect portfolios during times of negative equity market performance To generate a predictable stream of income Since the inception […]

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