The Dog Days of Summer, Bond Yields, and Economic Indicators
The Money Wise guys are in the studio once again to bring you a rapid-fire market recap and so much more! Last week, the Dow was down 2.2%, the S&P 500 was down 2.1%, and the NASDAQ was down 2.6%. YTD the Dow is up 4.1%, the S&P is up 13.8%, and the NASDAQ is up 27.0%. We’re in the Dog Days of Summer – and it’s about more than just the heat dome over Texas! The markets are experiencing a definite August swoon but with good reason. The NASDAQ was up more than 30% going into summer, so some losses were to be expected. The guys talk about bond yields, a major Chinese bankruptcy, and economic indicators – and they even get political. They also discuss GDP growth, how consumers are feeling, and the profit margins we continue to see in corporate America – plus what’s driving them.
What Do Bond Yields Mean?
The Money Wise guys share data on bond yields in this episode, so let’s discuss what that means. Bond yields are the returns investors expect to receive each year over each bond’s term to maturity. If you’re the investor who has purchased the bonds, bond yields are a summary of the overall returns that account for the remaining interest payments and principal you will receive. Bond yields are expressed as a percentage of the bondholder’s invested capital. You can learn more about bond yields here and here.
In the second hour, the Money Wise guys share important differences in an RIA vs. Broker discussion. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.