Fidelity Capital Group Inc.

Time to start navigating that minefield of mutual fund capital gains

Posted by Admin  •  Filed under News

Heading into capital gains distribution season for mutual funds, there are some potential pitfalls worth noting for financial advisers. Don't assume a fund will always be tax friendly.

The muni-bond lovefest continues. Investors are pouring money into muni ETFs. More than 75% of inflows have gone into ETFs with durations between 4 and 8.

The insatiable thirst for yield is sending some investors toward fine wines. “The wine market looked underpriced overall after four consecutive years of going down.”

If you're frustrated dealing with certain high-maintenance clients or colleagues, just be glad you're not responsible for decking out the dressing rooms for famous entertainers. Madonna needs a personal chef, Beyoncé wants baked chicken, and Eminem requires six Lunchable snacks.

Tagged: Mutual Fund, Capital Gain

Comments (15)  •  Sept 12, 2016  •  Edit

The value of dividends in retirement

Posted by Admin  •  Filed under News

Over the past 87 years, dividends have accounted for over 40% of the total return for the S&P 500 Index. The importance of dividends has been an often-overlooked part of investing, but will most likely move to the forefront as baby boomers prepare for retirement and look for high and growing income-generating investments.

There are generally two schools of thought on how best to structure a long-term investment portfolio. Many believe a total return approach is best. While this approach attempts to provide the growth that investors need to outpace the effects of inflation, it may also require them to sell assets at inopportune times.

The second school of thought believes that it is best to build a portfolio of high-yielding income investments that generate sufficient current income to cover expenses. This approach may also fall short and leave the investor heavily exposed to sometimes lower-quality, fixed-income investments and the ravages of inflation.

Tagged: Divided, Retirement

Comments (12)  •  Aug 29, 2016  • 

Emerging Markets Looking Good for Bond ETF Investors

Posted by Admin  •  Filed under News

Investors seek to earning a little extra yield and diversify a portfolio should consider emerging market debt and bond-related exchange traded funds, especially as this fixed-income segment has been relatively overshadowed by developed market debt.

A number of stars are aligning to help shine a light on emerging market debt, with low interest rates in the U.S., rising commodity prices and ongoing expectations of improving growth in developing economies.

Previous causes for concern have subsided. Notably, the Federal Reserve rate hike expectations have diminished after the Brexit vote as market observers argued that central bank policy makers would be loath to make changes in an uncertain post-Brexit world. Oil prices have recovered off their 12-year lows to around $50 per barrel, supporting many oil-heavy emerging economies. Additionally, China, the second largest economy in the world, appears to be stabilizing.

"EM debt has long offered attractive income, but weak fundamentals made it a somewhat risky proposition," BlackRock analysts, led by Richard Turnill, Global Chief of Investment Strategist, said in a research note. "We now see the asset class poised to benefit from the ongoing investor search for yield as three key headwinds to EMs have turned into tailwinds."

Tagged: Emerging Markets, Bond ETF

Comments (8)  •  May 27, 2016  • 

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