Emphasis: Fixed Income and Liquidity
By Bob Barber and Shawn Peters
With high-interest rates not seen in years and a very volatile stock market at this time, we are emphasizing our actively managed Ultra-conservative, Fixed-income Portfolio as an inflation hedge with NO stock market exposure and 100% daily liquidity with no surrender fees.
Why such an emphasis on managed Fixed Income now?
- High Inflation. The latest is 6.4% annually.
- Fixed Income vehicles like bonds, bank notes, etc., are paying much higher interest rates than in the past as the Fed raises rates.
- There continues to be extreme Stock Market Volatility which many can not handle as the Federal Reserve raises rates to combat inflation.
- Loss of Purchasing Power occurs due to inflation and requires active fixed-income management more than ever to combat inflation.
What about CDs?
CDs have a small place in an overall portfolio strategy but still lag inflation by 1.5-2% annually, resulting in a significant loss of purchasing power, and are not liquid without a penalty. This is called “going broke safely” year by year.
An actively managed Liquid, Ultra Conservative Fixed Income Portfolio with many different types of fixed-income investments to mitigate risk, and keep up with the inflation rate, not lag it, may help maintain purchasing power without investing in more volatile stocks.
Use a dual fixed-income strategy; we can help you with both.
Brokered CDs at better rates than most banks (presently in the 5% range), plus using our Ultra Conservative Fixed Income Portfolio that’s completely liquid as an inflation hedge may be a good dual strategy for all your fixed income needs.
Would you like to learn more about a dual fixed-income strategy as an inflation hedge without stock market exposure? We can be reached by phone or text at 830-609-6986 during regular business hours or you can set up an appointment (click here) to discuss what’s best for you.
Bob Barber – CEO and President
Shawn Peters- CCO and Vice President
The views expressed represent the opinion of Christian Financial Advisors®. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Christian Financial Advisors® believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Past performance is not indicative of future results.