Tag Archives: TLT

How To Measure Your Investment Portfolio — Part One: Volatility & Beta

There are a large number of statistical measures available for looking at a mutual fund, ETF, stock or a combination of these in the total portfolio.

For an individual investor, what are the important measures and what do they mean? Over the next two days I will highlight the measures I think are critical to understanding and managing your investing portfolio.

Today, I’ll start with the best measurement of risk in any investment – its volatility. Continue reading

Volatility in Government Bonds

There was a recent story in the WSJ titled Treasury Market Gets Volatile.  The article notes that a widely-followed measure of government bond volatility, the MOVE index from Merrill Lynch, has risen from 75 in August to 109 today.  The MOVE index is simply derived from options prices on bonds.  The more expensive the options are, the higher the market expects volatility to be.  As such, the rise in the index really does mean that the volatility of Treasury bonds has increased by 45% from August through November. Continue reading

How Risky Are Your Bonds?

I recently wrote an article for Financial Planning magazine in which I looked at ways of judging income investments. One of the major take-aways from the analysis–and a conclusion that surprised many readers–is that long-term government bonds now look as risky as junk bonds.

This is not a typo. Continue reading