Also, we look at whether Disney’s stock is a buy or not, and how to inflation-proof a portfolio.
Episode notes: In today’s episode, Saraja Samant, a manager research analyst for Morningstar Research Services, explains how investing in defined-maturity ETFs can help grow wealth in a rising interest-rate environment.
00:00 Introduction
00:38 Disney Loses Some Magic as 2022 Ends
01:32 Roblox Has Mixed Messages in Q3
02:32 Lyft’s Ride to Disappointment
04:00 What’s a Traditional Bond Ladder and How Does It Work?
04:37 Advantages and Disadvantages of Building a Bond Ladder With Individual Bonds?
06:15 What Makes Defined-Maturity ETFs Different?
07:53 What are Some of the Risks With Bond Ladder ETFs?
09:12 How Do the Costs Compare Between Building a Bond Ladder Using traditional Bonds Versus Building One Using Bond ETFs?
09:59 If an Investor Wants to Build a Bond Ladder ETF, How would they start?
11:06 Is It Too Late to Inflation-Proof Your Portfolio?
Read about topics from this episode.
Disney Posts Mixed Earnings With Streaming Subscriber Growth, Record Parks Revenue But Widening Direct to Consumer Losses
Uber, Lyft Drivers Remain as Contractors
Bond Ladder ETFs Can Help Investors Climb Higher
An Update on I Bond Yield
Your Inflation Toolkit
A Down-Market Survival Guide for Your 20s, 30s, and 40s
TIPS Versus I Bonds
What to watch from Morningstar.
Cheap Stocks For You to Consider
What to Buy or Skip: I Bonds, Apple, Amazon, or Meta
Where to Park Your Cash and Find Recession-Resistant Stocks
Markets are Undervalued, and We Highlight Some Cheap Stocks!
We Examine Tesla’s Stock and the Risks of a Strong Dollar
Read what our team is writing:
Susan Dziubinski
Chritine Benz
Saraja Samant
Follow us on social media.
Ivanna Hampton on Twitter: @IvannaHampton
Christine Benz on Twitter: @Christine_Benz
Saraja Samant on LinkedIn:
Facebook:
Twitter:
Instagram:
LinkedIn: …(read more)
HOW TO: Hedge Against Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
Missing from the discussion arounds bonds is the effect of inflation. While there has been some recent indication that inflation may be moderating, it is still well north of 7%. That number needs to be subtracted from any return you are expecting from bonds. And since no investment grade bonds are yielding anywhere near 7%, anyone buying a bond right now is taking a hit right out the door. Or in simpler terms, people buying bonds in mid November of 2022 are all paying someone for the privilege of lending them money. IMO that's not an attractive investment model. YMMV.
9:30 — expense ratio of 0.1 + 0.1 + 0.1 does not equal 0.3
What would be really interesting to look at is what effect the a company's "fair market value" (FMV, which is an "opinion") has on the company's actual market value (AMV) at a specific point in time. Does that AMV rise to meet its "FMV"? Or does the latter keep getting adjusted down? Does the magnitude of the difference between the FMV and AMV have an effect on the rate at which the AMV rises to the FMV (or declines if the FMV < AMV)? Would this show how useful FMV really is as an evaluative tool?