With the recent collapse in the value of Puerto Rico bonds and subsequent recovery in October and November 2013, the time is ripe for a post-mortem on this high-profile bond issuer.
Now is the time to take these steps with clients so that when the stock market corrects, they won't get a painful reminder of what their risk profile really is.
There's finally some recognition that the Federal Reserve's actions really did produce some stimulus. This could lead to self-sustaining growth in the US economy in 2014.
Given the prospect of rising U.S. Treasury yields in the coming year, high-yield bonds will produce positive returns in 2014 but won't match their performance in 2013.
When building or rebalancing the “value” slice of portfolios, advisors may start where most valuation-conscious investors begin: the price/earnings ratio.
