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Why the Dow is the Kardashian of Stock Indices

The Dow Jones Industrial Average is famous for being famous. As one advisor noted in a recent blog post "the Dow is ingrained in our subconsciousness as the premier benchmark for US stocks, which doesn't make any sense if you understand how the index works."

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Predicting How the Stock Market Will Perform Next Week

A headline touting how the stock market will perform in a week's time should be ignored as nonsensical. Anything can happen in a week. A month is equally unpredictable. But prognostications about the stock market for the upcoming year appeal to many people as worthy of consideration.

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A Unique Buying Opportunity: I Bonds

Low interest rates have reduced the attractiveness of fixed income investments, especially with the recent spike in inflation. But rising inflation has made I Bonds appealing, at least for the next few months -- they are paying 7.12% on an annualized basis!

I Bonds are U.S. government savings bonds that earn a composite of a fixed interest rate and an inflation rate. While currently the fixed rate is zero, the inflation rate is 3.56%. The inflation rate, however, resets every six months. Your rate of return will thus vary over time, dropping if inflation dissipates.

To learn more, see the following links from TreasuryDirect:

please note that you cannot buy I Bonds through your brokerage account (like Schwab). You need to purchase them directly from the U.S. Treasury. I Bonds must be held at least 12 months and penalties exist for withdrawals prior to five years. There are limits to how much you can purchase -- $10,000 per person, per calendar year (with additional opportunities in specified situations). The links above tell the whole story. I'm also happy to be a resource.

Words of Wisdom

Bargain ... anything a customer thinks the store is losing money on. -- Kin Hubbard

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