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Monthly Archives

April 2018

Interest Rate Changes = Bond Portfolio Changes

Finally, after 10 years, we're seeing fundamental shifts in the fixed income markets that are going to result in us making significant changes to the bond portfolios of our clients. Let me explain the how and why. Hello, my name is Paul Carroll. I'm the CEO and Founder of Efficient Wealth Management, a boutique wealth management firm. Since the 2008 recession, there's been a significant amount of monetary easing. Ben Bernanke was called “Helicopter Ben” for a good reason. He wrote a thesis that in that kind of an environment, you should drop money on the economy until the recession is over, and he did that, and it worked. But today there's a lot of cash sloshing around the system, and that extreme liquidity needs to be mopped up. That process drove interest rates down to the lowest rates since the 1800s, and finally, they're beginning to creep up. So...
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Market Correction Phase 2?

Yesterday the broad markets dropped about 2%, but they were led by some interesting stories. Hello. My name is Paul Carroll. I'm the CEO and founder of Efficient Wealth Management, a boutique wealth management firm. Interesting stories, for sure, have been driving the market in an extremely volatile fashion. Amazon somehow got into a fight with President Trump. Somehow, Amazon's at fault for what's happening to the United States Post Office. Actually, most analysts would agree that Amazon, if anything, has saved the post office, and the reason they're losing money is because Congress has required ongoing cash funding of pension plans. How he got into this spat, we don't know, but it's killing Amazon stock. Tesla, maybe, finally on the brink of bankruptcy. Certainly, if they can't raise significant cash in the near future, they're in a lot of trouble. They have had an extremely good safety record with...
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