This is a question you could soon begin asking as a recent rise in interest rates contributed to price declines in many bond funds. News the Federal Reserve feels comfortable enough with the strength and state of our economy to consider a change in current monetary policy is, without doubt, a positive development. Unfortunately, for some bond investors, good news may be bad news!
Bond prices and yields have an inverse relationship, meaning they move in opposite directions. This means as yields (interest rates) rise, bond prices (values) can fall. Many investors – driven by fear, the need for income, increasing underweight allocations, or other factors – have invested heavily in bonds. Over the past five years, this demand has helped drive bond prices higher, lowering yields and subjecting many investors to the often ignored or forgotten risks associated with these investments, one of which is "interest rate risk".
"Interest rate risk" is a term used to describe how an investment's value will change due to an increase or decrease in interest rates. As a simple example: a bond yielding 4 percent is more valuable to investors if interest rates fall to 2 percent and is less valuable to investors if interest rates rise to 6 percent. This is because their fixed interest income would either be greater than or less than what a new investor would receive purchasing a bond at current rates. Interest rate risk affects all bondholders, but typically bonds with longer maturities and/or lower yields are most impacted.
WASHINGTON – Cheryl Lofton had never intended to be a small business owner. Her grandfather, J.C. Lofton, was the first African American to own a tailoring school and related business in Washington, D.C. She spent her summers working with him, learning the craft. She was able to earn money while enrolled at Howard University by ironing, mending, and tailoring her classmates' clothes.
When her grandfather became ill, she found herself spending more time on the business – including purchasing a new building – and less time sewing and attending to financial matters.
"The day I opened the doors to the new building was the day he died," she recalls. "I was the first college-educated person in my family, and I went so I wouldn't have to join the family business. But my conscience wouldn't let me let the business go under. At the time, no one else in the family was interested or able."
Quality childcare is not just about babysitting and entertaining the child. As competition amongst centers increases, so does the need to offer a creative and learning environment where a child's appetite for learning is stimulated.
Tiffany Glover, owner of The Academy of Creative Learning, makes it her mission to challenge and develop young minds at her three-star academy. Equipped with an advanced degree and credentials, Glover prides herself on heading up a staff of like-minded professionals that use every opportunity to educate and motivate the children in their care.
Carlee McCullough: Tell me about yourself?
Tiffany Glover: I am the owner of The Academy of Creative Learning. I hold an MBA and I have over 18 years of professional experience as a human resources professional, entrepreneur, leader, early childhood educator and consultant. Additionally, I have a credential as a Tennessee Early Childhood Administrator (master level).
NEW YORK – About 1 in 6 unemployed workers are addicted to alcohol or drugs – almost twice the rate for full-time workers, according to the government's National Survey on Drug Use and Health.
The survey shows that 17 percent of unemployed workers had a substance abuse disorder last year, whereas 9 percent of full-time workers did so. The numbers are self-reported, and therefore, could be even higher in reality.
Substance dependence is defined by several factors, including having withdrawals, repeatedly using a substance over the course of one month and witnessing related adverse effects at home, work or school. Addictions to alcohol, illegal drugs and misused prescription drugs are all included.
Entrepreneurs with a passion for childcare and child development may become attracted to the idea of day-care business and what they consider a lucrative calling. The demand for services is increasing steadily and as the industry has evolved, so have the reimbursement formulas.
Parents in search of quality childcare typically will find their options fall into three categories: family care provided by a relative, in-home care provided by a nanny or babysitter, or day-care center.
Competition among day-care businesses is fierce. As more people move into the childcare business that equates to more options for parents and potentially diluted attendance at many centers. On the face of it, a move into childcare would appear a profitable business venture. However, state regulations have increased, funding formulas have caused decreased payments, and many centers are barely operating at break even.
Service, price and commitment to the community are bankable principles the way Kevin S. Jones sees them and he shared that viewpoint while in Memphis last week.
Vice President of Inbound Transportation for Walmart Corporation, Jones was the keynote speaker last Friday (Nov. 16) at the Holiday Inn-University of Memphis as the Mid-South Minority Business Council (MMBC) Continuum and the Minority Business Development Agency (MBDA) Business Center wrapped up MEDWeek 2013.
Walmart, said Jones, was founded on the principles of service, price and commitment and still operates on them today. Small business owners who become part of the corporation's system of suppliers mirror Walmart's embrace of those principles, he said.
NEW YORK – Hedge fund manager Dan Loeb revealed a stake in FedEx Tuesday morning, adding the he likes the stock and the management of the company.
Shares of FedEx spiked following the announcement.
Speaking during a conference Tuesday hosted by The New York Times Dealbook blog, Loeb told the audience that he met with FedEx CEO Fred Smith in Memphis last week.