Changes to the tax code and the Fed’s impact on interest rates are some of the topics we explore for income-oriented investors.
Why American Workers Pay Twice as Much in Taxes as Wealthy Investors (Bloomberg, September 12)
The author looks at the tax code and how some of the proposed changes by the Trump administration will impact investment income. “Trump, Ryan, and other Republicans in Congress are wrangling over a variety of competing goals for reform…more realistic legislative targets are lowering tax rates on individuals and corporations as well as eliminating the estate tax and alternative minimum tax.”
Where Big Money Investors Are Putting Their Fixed Income Dollars (CNBC, September 16)
Investors are turning to riskier assets with bond yields “barely hovering above zero in most developed markets.” Fund managers Joshua Friedman, Steven Tananbaum, Thomas Finke and Liew Tzu Mi discuss their fixed-income strategies at the Milken Institute event in Singapore.
How the Fed Is Affecting Income Investors (U.S. News & World Report, September 14)
Despite the Fed continuing to move towards higher interest rates, “most experts say it’s not likely bond investors will see any big changes anytime soon.” Although rates are rising, they are still relatively low in historic terms. “That leaves few options for investors looking for yield…right now, just about the only place you’ll find consistent payouts of 4 percent or more are in high-yield junk bonds or dividend-paying stocks.”
