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Papers & Articles

  How to Diversify, Achieve Income, and Manage the Current Interest Rate Market - by John Paul Tancona   Special Note: All of the investment products discussed here, like all investment products, have risks. The discussion below is not a recommendation to any individual investor, rather it is a summary of some of the products and approaches available in the current investment environment. Investors should review each product discussed, in full, including all the related risks before choosing to invest. The Federal Reserve has kept short term rates at .25% since 2008 while buying longer term assets in its Quantitative Easing Program. Now they are pulling back on the easing but also promising to keep rates low. This has led many of us to be concerned about owning fixed income assets in a possibly rising interest rate environment.  However, reducing your bond allocations in your portfolio is not the best strategy, in our opinion.  By doing this you are ignoring the diversification and income benefits of the asset class and increasing overall portfolio risk either…