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Portfolio Strategy News Daily Links 12-19-2008
12-19-2008 |Note: Here are some thought provoking articles for your enjoyment. Please be aware that we publish these links for educational purposes only. Hennion & Walsh is not responsible for the content of these articles, nor should their inclusion be considered any sort of endorsement on our part.
BusinessWeek: Where to Invest in 2009: Age-Based Advice
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“Today’s advice comes from David Brady, Brady Investment Counsel. We favor small-caps over large-caps. Large-caps are attractive but will be weighted down by Baby Boomers moving investment allocations away from stocks to bonds over the foreseeable future. Small- and mid-caps that can grow sales and earnings per share will see their prices move higher, in spite of this trend.”
ClarkHoward.com: New Poll about Americans’ Perceptions of Economic Slowdown
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“The penny-pincher often speaks about “the 50/50,” which is an unscientific idea he has that roughly half of us won’t need to change anything as we move into a deep recession. The other half of us, of course, will. Just be sure to make your financial decisions based on your bottom-line — not on the emotional feeling dominating the country.”
Bloomberg.com: Invest: Mortgage Rates Left in Dust by Treasuries, Failures
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“Americans seeking mortgages aren’t getting the full benefit of record low yields on Treasuries and government-supported mortgage bonds, blunting U.S. efforts to curb the housing crisis. While the average rate on a fixed 30-year mortgage fell to 5.18 percent last week from 6.47 percent in October, according to Mortgage Bankers Association data, the historical relationship between home loans and mortgage bonds shows rates should be at least half a percentage point lower. Though the U.S. is paying nothing to borrow in some cases, homebuyers are paying about $730 more a year than they would otherwise on a $200,000 mortgage.”
Los Angeles Times: Buyers Jump into Corporate and Muni Bonds after Fed Move
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“The Federal Reserve’s move to zero on its benchmark short-term interest rate on Tuesday was the equivalent of trying to dynamite the credit crunch, to reopen routes for money to flow. It’s definitely having that effect: Some investors are rushing into parts of the credit markets where they wouldn’t venture even a week ago.”