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The Wall Street Journal Features Michael Ciccone in “Where to Put Your Money in 2019”

The Wall Street Journal Features Michael Ciccone in “Where to Put Your Money in 2019”

The Wall Street Journal quotes Tradition’s Michael Ciccone, CFP in the recently published article “Where to Put Your Money in 2019.” Below is an excerpt from the article:

“This is not a particularly great time to be invested in bonds,” says Michael Ciccone, an investment adviser with Tradition Capital Management in Summit, N.J.

One of the first things he seeks to purge from portfolios of new clients is intermediate bond funds. Though Federal Reserve policy makers have recently signaled a possible pause on interest-rate increases, they are likely to continue raising rates over the longer term to stay ahead of inflationary pressures created by economic growth and a tighter labor market. As rates rise, bond prices fall—and so does the appetite for existing or new bonds.

The headwinds confronting the Treasury bond market were observed early in November, when the Treasury sold $19 billion of 30-year bonds, only to encounter the weakest demand since 2009. In place of those intermediate government bonds, Mr. Ciccone will fill up the bond allocations with shorter-term fixed-income securities.

 

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