For this episode, we had the pleasure of sitting down with Matthew Crouse, CFA, MBA, Ph.D. (a man of many titles), to discuss his latest article in the AAII Journal, “Fixed-Income Risks and Opportunities in a Rising-Rate Environment.”

He discusses the principles of duration (interest rate risk), credit risk and the yield curve. He also touches on closed-end fund preferreds and bonds funds to help the individual investor navigate the rising-rate environment with ease.

Listen to this episode and learn:

• What duration (interest rate risk) is and how to combat it successfully

• Opportunities and risks of closed-end fund preferreds and bond funds

• The objective of maximizing returns while taking the least amount of risk

Matthew Crouse, CFA, MBA, Ph.D., is an adjunct professor at Westminster College in Salt Lake City, Utah, who specializes in researching closed-end funds (CEFs), exchange-traded funds (ETFs) and other fixed-income products targeted to retail investors. Jenna Brashear is the host of the Individual Investor Show as well as the producer for live AAII webinar events.

Additional Resources

Fixed-Income Risks and Opportunities in a Rising-Rate Environment

More articles by Matthew Crouse

Fidelity: Fixed Income, Bonds & CDs

FactSet: Fixed Income

What Is the Yield Curve?

Preferred Stocks Explained

Understanding Bond Credit Ratings

Register for upcoming webinars: https://www.aaii.com/webinars

Want more financial education? Learn more about AAII at https://www.aaii.com

ABOUT AAII

The American Association of Individual Investors is an independent, nonprofit corporation formed for the purpose of assisting individuals in becoming effective managers of their own assets through programs of education, information and research.

Individual Investor Show: Risks & Opportunities in Fixed Income When Rates Are Going Up | AAII

Are you an investment sleuth? Do you like to delve deep into financial metrics to better understand the market? If you’re someone who is looking for a long-term valuation of the market adjusted for inflation, we know a financial metric for you.

For this episode, we spoke with AAII Journal editor Charles Rotblut, CFA, about his latest article on the cyclically adjusted price-earnings (CAPE) ratio and why using the CAPE ratio during high inflation can give individual investors insights into expected market returns over the next five to 10 years by looking back 10 years into the past.

Listen to this episode and learn:

• What the CAPE ratio is and what it entails

• How to effectively use the CAPE ratio to invest with confidence

• When to use the CAPE ratio in order to analyze the long-term value of the market

Charles Rotblut, CFA, is the creator of the PRISM Wealth-Building Process and Academy. He is also a financial analyst, vice president and AAII Journal editor. Jenna Brashear is a finance writer, podcast host and community manager at AAII.

Additional Resources

CAPE Ratio Is High, but Down From Peak

Online Exclusive: Delving Into the Definition of the CAPE Ratio

Valuations, Inflation and Real Returns, an interview with Robert Shiller

A Cautionary Note About Robert Shiller's CAPE

AAII Stock Screening Community

AAII Journal July 2022 Issue

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Individual Investor Show: Utilizing the CAPE Ratio During Inflationary Periods | AAII

Calling all income investors and those worried about high interest rates impacting their portfolios! If you’re on the hunt for an investment that has low interest rate risk, look no further than short-term bond funds.

For this episode, we chat with AAII finance writer Matt Bajkowski about his latest article in the July 2022 issue of the AAII Journal, “The Benefits and Risks of Short-Term Bond Funds,” where he explains how income-seeking investors might capture high yields through bonds, especially short-term bonds, this year.

Watch or listen to this episode and learn:

• The pros and cons of investing in short-term bond funds

• Why short-term bonds carry less interest rate risk than longer-term bonds

• How to effectively evaluate a short-term bond fund before investing

Additional Resources

July 2022 AAII Journal Issue

The Benefits and Risks of Short-Term Bond Funds

AAII Allocation Models

Bond Investing Ideas

The Benefits and Risks of Intermediate Bond Funds

Beginner’s Guide to Bond Investing

Types of Bonds

Income Investing Community

Register for upcoming webinars: https://www.aaii.com/webinars

Want more financial education? Learn more about AAII at https://www.aaii.com

ABOUT AAII

The American Association of Individual Investors is an independent, nonprofit corporation formed for the purpose of assisting individuals in becoming effective managers of their own assets through programs of education, information and research.

Individual Investor Show: Combating High Interest Rates With Short-Term Bond Funds | AAII