About George Karpus

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So far George Karpus has created 23 blog entries.

Perspectives on the COVID-19 Pandemic

In times of unparalleled uncertainty it is helpful to seek perspective. Reflecting on the COVID-19 induced shut down, I think of it as a storm with wind and rain blowing across a forest. The weak trees fall first. Then, as the wind and rain continues, other trees begin to come down. The longer the storm [...]

2020-06-08T07:28:07-05:00June, 2020|George Karpus|

Is the Tide Turning Toward Internationals?

Through the second week of November, domestic stocks, as measured by t he S&P 500 Index, have returned a total of 26.7%. International stocks, as measured by the MSCI All Country World ex-U.S. Index have returned a total of 16.6%.1 Needless to say, there are very few unhappy equity investors out there today. This is [...]

How Your Brain Impacts Your Investment Decisions

The Golden Rule of Investing is “Buy Low, Sell High”. Seems rather simple and easy to follow, so why do individual investors consistently underperform market indices? Despite the simplicity of the rule, it turns out it’s difficult to implement. Countless factors impact how individuals make decisions on a daily basis, and, generally speaking, these factors [...]

Indicators of Future Returns

Returns on stocks and bonds have been quite impressive over the past 10 years ending September 30, 2019. In fact, stocks (as measured by the S&P 500 Index) have had a total return just over 13% per year, while the 10-year U.S. Treasury bond has had a total return of approximately 4% annually1. While it’s [...]

Now is a Good Time to Consider Alternative Investment Strategies

Negative yielding bonds overseas, coupled with slowing growth due to the trade war with China and a dovish Fed, has pushed long-dated Treasury yields to historically low levels.1 Investors searching for income have gravitated toward the defensive sectors of the stock market, particularly the RUST sectors (i.e., REITs, Utilities, Consumer Staples, and Telecom), resulting in [...]

IMPLICATIONS OF LOW TO NEGATIVE INTEREST RATES

Interest rates around the world have declined to some of the lowest levels in my lifetime of 70 plus years. The 30-year U.S. Treasury was at its lowest yield ever in August1 since being first issued in the mid 1980’s. The long-term (30-year) U.S. Treasury is selling at a yield that is about ¼ of [...]

2020-03-23T12:46:56-05:00September, 2019|George Karpus, Published in the Daily Record|

Active vs Passive: A Longer-Term Perspective

Let’s face it, passive investing is all the rage. It makes perfect sense when, since 2011, active large-cap equity management has only outperformed in one year. Some are wondering if active management has any future. In the current black or white, this or that, all or nothing climate of discourse, data gathered by Hartford [...]

Withrdrawal Considerations for IRAs

An individual retirement account (IRA) is an important savings vehicle that allows individuals to make pre tax contributions into their own investment portfolio. There are annual contribution and household income limits to determine your investment for the given year. The contributions can be deducted on your taxes and the investments in the account grow tax-free [...]

The SECURE Act – The Good and the Bad

There are potentially impactful changes to the laws regarding employer’s qualified plans and family savings plans in the works right now in Congress. These changes, if enacted into law, would require amending retirement plans to reflect mandatory and elective changes. The U.S. House passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act by [...]

Not Even Experts can predict the direction of Interest Rates

At the end of 2018, the interest rate on a 10-Year Treasury bond was 2.7%. The belief among professionals at this time was that interest rates would rise in 2019.1 These economists believed Trump’s tax cuts and continued economic momentum would ignite growth and inflation, thus higher interest rates. Very few of these professionals forecasted [...]