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Investments
Monthly Investment Summary Reports Archive
The Investment Summary provides a numerical and graphical portrayal of the allocation of portfolio holdings by asset class. It also presents important bond yields and money market rates to provided market trend information as well as a way to measure the portfolio’s yield relative to the fixed income markets.
2010 Reports
- Month Ending 7/31/10 - Interest rates and bond yields continue their relentless decline toward zero. The Federal Reserve has pledged to keep interest rates exceptionally low for an extended period due to low inflation and economic slack. That is the Fed’s “low for longer” promise. The unemployment rate is 9.5% and core (ex-food and energy) inflation is below the Fed’s unofficial 2% target. The outlook for sluggish growth and high unemployment for the foreseeable future translates into low interest rates for a very long time.
- Month Ending 6/30/10 - Federal Reserve comments continue to promise exceptionally low interest rates for an extended period. Debt-burdened consumers are cutting spending due to weak home prices, high unemployment, slow income gains, and volatile stock prices. Inflation and inflation expectations remain very low with some risk of deflation. Businesses are very reluctant to hire new employees with the uncertain outlook for sales growth, and the impact of Federal fiscal stimulus programs is fading. All these factors are likely to keep short term interest rates and long term bonds yields very low for a long time.
- Month Ending 5/31/10 - The European debt crisis, high U.S. unemployment, low inflation, consumer expectations for low future inflation, and a weak residential housing market suggest the Federal Reserve will retain extremely low short term interest rates for an extended period lasting until the middle of 2011.
- Month Ending 4/30/10 - Modest economic growth, contained inflation, high unemployment, fragile credit markets, a weak housing market, and low future inflation expectations have encouraged the Federal Reserve to keep short term interest rates exceptionally low for an extended period. The central bank is likely to wait for a substantial drop in unemployment before changing monetary policy.
- Month Ending 3/31/10 - Short term interest rates tilted slightly higher despite the Federal Reserve’s view that they will stay extremely low for an extended period of time. The Fed’s monetary policy position is determined by contained inflation, high unemployment, and low inflation expectations. Historically, a 9.7% U.S. unemployment rate means low short term interest rates.
- Month Ending 02/28/10 - Short term interest rates remain anchored at low levels due to the Federal Reserve’s promise to keep rates exceptionally low for an extended period. The economic numbers suggest continued moderate, fitful, irregular improvement in the economy and the job market. Long term bond yields edged higher and stocks rose in anticipation of better economic times ahead. But inflation remains low and unemployment is still high. A rise in short term interest rates seems unlikely to occur for some time.
- Month Ending 01/31/10 - Short term interest rates remain low because the Federal Reserve has promised low rates for an extended period to insure a sustainable economic recovery. The Fed seems likely to keep rates low until the unemployment rate falls for six months or more.
2009 Reports
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