There may be a place for tax-exempt municipal bond funds in the portfolios of middle-class and upper-middle-class American households as well as for those in the upper-income group. I have about 15% of my fixed-income funds invested in municipal bonds. They may be suitable in long-term after-tax accounts where you want to reduce taxes. State-focused municipal bond funds may also reduce state income taxes. This article discusses Continue reading →

A tradition dating back to the days of FundAlarm was to annually share our portfolios, and reflections on them, with you. My portfolio, indolent in design and execution, makes for fearfully dull reading. That is its primary charm.

This is not a “here’s what you should own” exercise, much less an “envy me!” one. Instead, it’s a “here’s how I think. Perhaps it will help you do likewise?” exercise. Continue reading →

What kind of investor are you? Do you want yield, safety, yield with a reasonable risk, or total return? I created a ranking system to combine Risk, Yield, Return, Quality, Trend, and Tax-Efficiency factors into an overall rating. I used yield divided by Ulcer Index which measures the depth and duration of drawdowns to limit the number of categories that I evaluate.

My favorites may not be the same as yours. Table #1 shows how I rank the categories. I will be discussing Continue reading →

Every day, Americans rely on 2.2 million miles of aging water pipes, some laid before the Civil War, to deliver life’s most essential resource. This vast network is crumbling beneath our feet, requiring over $2 trillion in repairs and upgrades by 2043. Yet this infrastructure crisis isn’t just about fixing what’s broken – it’s about building for a future where three-quarters of Earth’s land masses are becoming permanently drier and extreme weather events are the new normal.

For investors, this convergence of urgent infrastructure needs and climate adaptation creates Continue reading →

Uncertainty is in the air. Do you feel it? The price-to-earnings ratio of the S&P 500 is approaching 30 and is within bubble territory which implies below average long-term returns. Thirty-five percent is concentrated in the top ten holdings and 46% is concentrated in the Technology and Financial Sectors.  The economy is stronger than expected and inflation pressures still exist so volatility is high. The yield on the 10-year treasury fell from 4.7% last April to 3.6% in September back up to 4.8% last month and has fallen to 4.6%. Bond investors are expecting rates to remain higher for longer and want to be compensated for duration risk.

President Trump campaigned on the platform of tax cuts which are a stimulus but Continue reading →