Weekly Wrap: Crypto in Retirement, Lessons From Buffett, and the Ultimate Stock-Pickers' Index
We recap the week on Morningstar.com and note the most popular stocks, funds, and exchange-traded funds.
|Editor's note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.|
There’s a simple way to make sure an article gets read or a video gets watched on Morningstar.com: Put “dividend” or “income” in the headline.
That’s not surprising, really. For the better part of a decade, income has been elusive. The 10-year Treasury bond yields half what it did a decade ago. The dividend yield on the S&P 500 has been down over the past decade, too. Today’s yield-deprived investors are trying to squeeze income from their portfolios like one more brushful of toothpaste from a flattened tube. No wonder they’re looking for some guidance.
Indeed, solving the income conundrum requires trade-offs. Some argue that going further out on the risk spectrum is a must for today’s yield-seeker: In fact, the CIO of Franklin Templeton’s fixed-income team, Sonal Desai, suggested in a recent episode of The Long View podcast that high-yield and emerging-markets bonds should no longer be viewed as fringe investments in today’s income-tight climate.
Other professionals, including those who participated in a roundtable conversation with our own John Rekenthaler, suggest a significant rethinking of income-centric approaches entirely. In fact, participant and retirement researcher Michael Finke says that investors who focus excessively on income are just setting themselves up for disappointment. In our updated Guide to Income Investing, we take a look at the traditional bread-and-butter investments of yield-seekers: dividend-paying stocks and bonds. But we go beyond those investments. We talk about other ways to generate cash flow from a portfolio and how annuities can fit in the retirement-income puzzle.
Flimsy yields are likely here to stay, at least for a while longer. It’s time to adapt.
Meet the Winners of the 2021 Investing Excellence Awards
The winners represent the best of the asset-management industry.
How to Build a Portfolio You Don't Have to Babysit
Take these steps to become more of a hands-off investor.
Top 10 Holdings of Our Ultimate Stock-Pickers' Index
Large-cap strategies continue to underperform the market through 2020.
Who Wants Cryptocurrency in Their Retirement Plan?
Most people remain hesitant, but there's a small crypto-curious contingent.
The Next Generation of Fund Investing
Where the industry is headed.
3 Things Investors Can Learn From Warren Buffett
Whether you’re new to the market or not, there’s a lot to learn from Berkshire Hathaway’s leader.
Retirees: If You Love Income, You Should Love Cash Flow Even More
You diversify your investments; why wouldn’t you diversify how you source your in-retirement living expenses?
For Inflation Protection, Commodities Belong in the 'Too Hard' Pile
On the pitfalls of defending against the slow, corrosive effects of inflation with an incredibly volatile asset.
Are You Overpaying for Your Sector Fund?
Specialized sector funds can mean higher fees for investors.
8 of Our Favorite Little Funds
Here are some under-the-radar gems.
3 Funds for Emerging-Markets Bond Exposure
Amid a mixed start to 2021, here are three compelling options for a stake in the sector.
There Are Many Ways to be a Value Investor
Value investing’s strong long-term track record makes a compelling argument in favor of cheap over expensive.
Vanguard Is Adapting to Stiff Competition
Advice, high-conviction active, and private equity are three big initiatives.
Your Index Fund Is Changing Its Target Index. Now What?
Two Vanguard funds recently changed their benchmarks. Ben Johnson lays out what such events mean for fundholders.
Can Rivals Catch DoorDash? As its network effect strengthens, we think the company can maintain its lead.
10 Promising Stocks to Consider
These companies are growing their competitive advantages--and their stocks are undervalued.
3 Favorite Stocks of Top Managers
These names dominate the portfolios of our Ultimate Stock-Pickers.
Dividend Stocks Are Back, Fixed Income Not So Much
The value rotation has given new life to laggard equity-income strategies.
2 New Stocks to Watch
Morningstar has recently initiated coverage of DoorDash and SoFi.
The U.S. Housing Shortage Not as Bad as Some Fear
We think some estimates of the housing shortage are too severe.
The Hidden Assumptions of Financial Calculators
Don't ignore the program's defaults.
The Tool Kit for Sponsoring Black Female Advisors
Having a mentor is good, but a sponsor can champion your career.
Jack Brennan: Price Pressure in the Advice Business Is 'Inevitable'
The author and former Vanguard CEO discusses the current investment landscape, his thoughts on ESG and ETFs, and the outlook for retirement planning.
What Are TIPS, and How Do They Help Protect Against Inflation?
A quick look at the benefits and risks of Treasury Inflation-Protected Securities, and the best way to invest in them.
What If Biden's Capital Gains Tax Is Retroactive? The proposal’s fine print suggests the effective date could already be in the past.
Amid Economic Recovery, How Stable Is the Bond Market?
Franklin Templeton's Sonal Desai discusses the durability of economic recovery and the value of holding bonds.
Morningstar.com does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.