There’s 50 ways to leave your lover and maybe more than that to lose your money or “break the buck,” as some label it in the money markets. You can buy the Brooklyn Bridge, bet on the Cubs to win the World Series or have owned 30 year Treasury bonds in 2013, to name just a few. But bridges and baseball aside, what you’re probably interested in hearing from me is how to avoid breaking your investment buck in 2014.
1) Total return bond portfolios should float above water in 2014.
2) No guarantees either!
3) Watch PCE inflation more than the unemployment rate.
4) Emphasize credit, volatility, currency and 1-5 year maturities.
5) Expect 3-4% total return for bonds.
6) If you think stocks will keep going, then keep riding. But seesaws go up and down!