Jim Pearce began his career as a stockbroker in 1983 and over the years has managed client investment portfolios for major banks, brokerage firms, and investment advisors. Jim has a BA in Business Management from The College of William & Mary and earned the CFP designation from the College for Financial Planning in 1999..
It’s been a while since shareholders of telecom giant Verizon Communications (VZ) have had reason to celebrate, notes Jim Pearce, editor of Investing Daily's Personal Finance.
If you’re wondering what is driving the stock market’s behavior these days, it really boils down to one thing: Interest rates. But you can use higher interest rates to your advantage. And one of the best ways to do that is to buy bonds via a vehicle like the iShares 7-10 Year Treasury Bond ETF (IEF), counsels Jim Pearce, editor of Personal Finance.
After Target (TGT) lowered its 2023 earnings guidance when it released its Q2 results on Aug. 16, Wall Street held its collective breath until fellow big box retailer Best Buy (BBY) did the same two weeks later. However, the electronics and appliance retailer surprised just about everyone when it released its fiscal 2024 Q2 results on Aug. 29, recouping its previous share price decline in a single day, notes Jim Pearce, editor of Personal Finance.
Higher interest rates leave less margin for error for markets. But once the Fed is done raising rates, I expect bond yields to come down gradually and the share price of companies like American Electric Power (AEP) to start rising, underscores Jim Pierce, editor of Investing Daily’s Personal Finance.