Tag Archives: VIX Index

Can You Create a 7% Yield Portfolio Focusing on Munis and Dividend Stocks?

In “Can You Get 7% Per Year in Income with Only Moderate Risk?” a blog I wrote back in the beginning of December, I analyzed a portfolio with 7% yield and “moderate” risk.  My analysis suggested that it was possible to create a portfolio with 7% yield and about the same level of risk as a portfolio allocated 50% to a total market stock index (VTI) and 50% to a broad bond index (BND).  My analysis also suggested that this portfolio had a projected volatility of 15% on a going forward basis. A helpful reader (see his comments by clicking on the article above and scrolling to the bottom of the page) found that this portfolio lost Continue reading

When Market Volatility Returns with a Vengeance

Wall Street has a bad case of the downers lately. With triple-digit drops in the Dow one day and double digit jumps the next many investors chose to take shelter on the sidelines as they pried open a bottle of Pepto.

The picture is not pretty: As of August 10th, investors could only stand back and watch as the S&P 500 Index continued a 20-day trading sell-off resulting in a 14% loss. So what does it mean and what should we do about it when the market as a whole suggests that the value of a broad index of U.S. companies is 14% less today than a month ago?
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