• Home
  • Careers
  • Our Approach
  • Who We Help
    • Individuals
    • Couples
    • Energy Sector Employees & Retirees
      • Occidental Petroleum (Oxy) Employees
      • Shell (RDS) Employees
  • Library
    • Financial Blog
    • In The Press
    • Articles
  • Client Login
  • About Us
  • Contact Us

The Goff Financial Group

Fee Only Financial Advisors

  • Home
  • Careers
  • Our Approach
  • Who We Help
    • Individuals
    • Couples
    • Energy Sector Employees & Retirees
      • Occidental Petroleum (Oxy) Employees
      • Shell (RDS) Employees
  • Library
    • Financial Blog
    • In The Press
    • Articles
  • Client Login
  • About Us
  • Contact Us

Retro Investing Article from WSJ

June 2, 2015 by Matthew Goff 26 Comments

wsjThe Wall Street Journal recently published a very timely article about the current investment climate. Here’s the link in case you missed it: “Retro Investing – Look Back to Get Ahead.” As the title implies, the author suggests that history can offer important lessons to help us chart an investment path forward. I agree.

In a real sense, we are now in a “postwar” period. In the late 1940s, the US government labored under the massive debt accumulated during World War II. Today the government has a similar debt burden because of the 2008 financial crisis. As it did after World War II, the Fed is again keeping interest rates extremely low to help the government finance its huge debt. Savers are paying a price. They are being penalized through low rates on CDs, savings accounts and bonds.

We can expect interest rates to remain low for the foreseeable future. The Fed kept interest rates capped at a low level from the end of World War II through 1951, and there is no sign that it will behave any differently in the aftermath of 2008. This means that bonds likely will continue to produce low yields for some time to come.

Bonds values can erode when yields are suppressed by the government. According to the article, right now the real yield on long-term U.S. Treasuries is a negative 0.6% (after inflation). The prospect that this will continue or get worse is the real risk of bonds.

Mr. Lauricella makes the excellent point that when bond prices and yields are suppressed for a prolonged period and economic growth is sluggish, high-yield dividend equities can become an important element in even a conservative portfolio. Throughout the 1940s and 1950s, solid dividend stocks provided the best returns for investors.

Filed Under: Bonds, Economy, Equities, Federal Reserve, Financial Markets, Fixed Income, Stocks

Trackbacks

  1. คาสิโนออนไลน์เว็บตรง says:
    November 27, 2021 at 5:24 pm

    … [Trackback]

    […] Here you will find 20401 additional Info on that Topic: gofffinancial.com/retro-investing-article-from-wsj/ […]

  2. College Goals Essay Samples says:
    December 13, 2021 at 1:37 pm

    … [Trackback]

    […] Info to that Topic: gofffinancial.com/retro-investing-article-from-wsj/ […]

  3. Guns For Sale Online says:
    December 28, 2021 at 10:01 am

    … [Trackback]

    […] Information to that Topic: gofffinancial.com/retro-investing-article-from-wsj/ […]

  4. kardinal stick says:
    January 1, 2022 at 6:59 pm

    … [Trackback]

    […] Read More on on that Topic: gofffinancial.com/retro-investing-article-from-wsj/ […]

  5. 3candidacy says:
    January 12, 2022 at 6:47 pm

    1condone

  6. free classic 7s slots says:
    January 28, 2022 at 9:55 am

    common expansion slots https://2-free-slots.com/

  7. free game slots says:
    January 28, 2022 at 2:38 pm

    free igt slots https://freeonlneslotmachine.com/

  8. mr cashman slots music says:
    January 28, 2022 at 7:33 pm

    doubledown casino slots https://candylandslotmachine.com/

  9. 777 slots says:
    January 28, 2022 at 9:33 pm

    big fish free slots games https://pennyslotmachines.org/

  10. slim slots says:
    January 29, 2022 at 2:53 am

    deal or no deal slots https://slotmachinesworld.com/

  11. Benelli Shotguns For Sale says:
    February 2, 2022 at 6:41 am

    … [Trackback]

    […] Info on that Topic: gofffinancial.com/retro-investing-article-from-wsj/ […]

  12. play blazing 7 slots free says:
    February 3, 2022 at 11:06 am

    my vegas slots https://slotmachinesforum.net/

  13. vegas wotld slots says:
    February 3, 2022 at 1:49 pm

    aristocrat slots https://slot-machine-sale.com/

  14. dgn free slots says:
    February 3, 2022 at 7:40 pm

    triple diamond slots https://beat-slot-machines.com/

  15. slots capital says:
    February 3, 2022 at 8:46 pm

    lobstr fest 11 slots https://download-slot-machines.com/

  16. river slots sweepstakes says:
    February 4, 2022 at 12:07 am

    slots winning video 2022 https://411slotmachine.com/

  17. fortune slots free online says:
    February 4, 2022 at 5:29 am

    central vally slots https://www-slotmachines.com/

  18. fre slots online says:
    February 4, 2022 at 8:11 am

    youtube slots https://slotmachinegameinfo.com/

  19. dissertation length says:
    February 10, 2022 at 12:03 pm

    dissertation writing guide https://buydissertationhelp.com/

  20. phd dissertation example says:
    February 11, 2022 at 9:48 am

    writing dissertation for dummies https://dissertationwriting-service.com/

  21. dissertation help service quality says:
    February 11, 2022 at 1:30 pm

    online dissertation help to write https://help-with-dissertations.com/

  22. dissertation chair says:
    February 11, 2022 at 3:54 pm

    citing a dissertation https://mydissertationwritinghelp.com/

  23. dissertation help online uk says:
    February 11, 2022 at 8:43 pm

    citing a dissertation mla https://dissertations-writing.org/

  24. doctoral dissertation writing help me says:
    February 11, 2022 at 10:54 pm

    masters dissertation writing help https://helpon-doctoral-dissertations.net/

  25. relx says:
    February 24, 2022 at 2:27 am

    … [Trackback]

    […] Here you will find 14361 more Info on that Topic: gofffinancial.com/retro-investing-article-from-wsj/ […]

  26. ดูหนังออนไลน์ says:
    February 24, 2022 at 4:09 am

    … [Trackback]

    […] Read More on on that Topic: gofffinancial.com/retro-investing-article-from-wsj/ […]

Leave a Reply

You must be logged in to post a comment.

Recent Posts

  • How To Select A Financial Advisor
  • Sequence of Returns Risk
  • Learning from Biases and How They Affect Our Financial Choices
  • Tuning Out the Noise from the Financial Media
  • Spotlight Shift to Bonds
  • Should You Consider Refinancing Your Mortgage?
  • What Are Stock Splits?
  • Small Business Retirement Plans
  • Why You Might Want to Create a Donor-Advised Fund
  • Are Your Beneficiary Designations Up to Date?
[contact-form-7 id="340" title="Footer Contact"]


The Goff Financial Group
11 Greenway Plaza, Suite 1425
Houston, Texas 77046

Copyright © 2022 The Goff Financial Group

ADV Part II | Form CRS | Careers | Q&A

Tel: 713.850.8900

Fax: 713.728.4884


The Goff Financial Group © is an independent, fee-only investment advisor registered with the U.S. Securities and Exchange Commission.

Navigation
  • Home
  • Careers
  • Our Approach
  • Who We Help
    • Individuals
    • Couples
    • Energy Sector Employees & Retirees
      • Occidental Petroleum (Oxy) Employees
      • Shell (RDS) Employees
  • Library
    • Financial Blog
    • In The Press
    • Articles
  • Client Login
  • About Us
  • Contact Us

Complete the form below and we will send you the checklist before our call

Scheduling Options:*
Please choose from one of the options below
First and Last Name*
Hidden
In What Areas Do you Need Assistance?
Select All That Apply

Find Out If An Independent Advisor Is Right For You

"*" indicates required fields

First and Last Name*
In What Areas Do you Need Assistance?
Select All That Apply

Mail my free book to the following address. (No P.O Box)

  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • What is your top concern today?

Kick-Start Your New Work-Free Life!

The 3 Pillars of Successful Retirement Plans
  • This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.