A retiree moved $180,000 into the iShares 20+ Year Treasury Bond ETF (TLT) expecting to lock in a 4.5% yield and benefit from falling long-term rates. Instead, the 20-year Treasury yield rose to 5%, causing TLT’s price to drop about 8.5%, resulting in a net 4% loss after coupon income. TLT’s long duration (about 17 years) makes it highly sensitive to interest rate increases, turning it into a leveraged bet on falling rates rather than a safe bond holding. For investors seeking stability, shorter-duration Treasury ETFs like TBIL, SHY, and IEI offer similar yields with much lower risk. Investors still holding TLT should consider a stop-loss strategy to limit losses from further rate rises.
After a two-month rally, semiconductor stocks sharply dropped nearly 10%, causing a spike in the Cboe Volatility Index (VIX) and record options trading on the S&P 500. This sell-off signals a correction from speculative excess amid upcoming IPOs and ...
This monthly series highlights five large-cap, dividend-paying stocks trading at significant discounts compared to their historical norms, selected from over 7,500 U.S.-listed companies. The primary list offers an average yield of 4.2%, with two addi...
May's employment report showed a strong gain of 172,000 jobs, surpassing expectations and revising previous months upward, signaling a robust labor market. This strength pushed Treasury yields higher, particularly impacting long-duration bond funds l...
