Wednesday, 31 July 2013 19:56 admin
“We’re stuck in a low rate environment,” Mitchell Reiner, founding partners of Wela Strategies and Chief Operating Officer for Capital Investment Advisors, said in the interview. “Growing problem of baby boomers retired. No one really attached the idea or changed the idea of managing portfolios. Yes, it’s here. It’s upon us. The first stage of baby boomers is retiring. That’s the challenge in a low or rising rate environment. Where are we going to get yield?”
Reiner explains that he has been using fixed-income ETFs for duration calls. Duration measures a bond fund’s sensitivity to changes in interest rates. As interest rates rise, bond funds with higher durations will experience a greater negative impact.