ALL THE MONEY NEWS YOU NEED TO KNOW | | | | | | Daniel de Visé | Personal Finance Reporter
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Good morning! It's Daniel de Visé with your Daily Money, post-election markets edition. |
U.S. stocks staged a post-election rally last week, notching record highs, with the Dow and S&P 500 posting their best weekly performance of the year. The S&P 500 and Dow were both about 4.7% higher for the week, and on track for their best week since November 2023, Medora Lee reports. |
As the stock market rose, the bond market fell |
As a New York Times writer noted the other day, stock investors are optimists, while bond investors are pessimists. |
As stocks roared to record highs in the wake of news of Donald Trump's election triumph, the bond market sank. On Wednesday, the yield on 10-year Treasury bonds rose to 4.479%, a four-month high. A higher bond yield means a declining bond market: Bond prices fall as yields rise. |
Does the 60/40 rule have a future? |
Here's more on stocks and bonds. |
The 60/40 rule is a fundamental tenet of investing. It says you should aim to keep 60% of your holdings in stocks, and 40% in bonds. |
Stocks can yield robust returns, but they are volatile. Bonds serve as a buffer when stock prices fall. |
The 60/40 rule is one of the most familiar principles in personal finance. Yet, not long ago, much of the investment community walked away from it. |
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Each weekday, The Daily Money delivers the best consumer and financial news from USA TODAY, breaking down complex events, providing the TLDR version, and explaining how everything from Fed rate changes to bankruptcies impacts you. |
Daniel de Visé covers personal finance for USA Today. | | | | S&P 500 tops 6,000 and Dow rise above 44,000 for first time after Republicans win big in the election, Fed trims rates and consumer sentiment rises. | | | | Stocks and bonds went in different directions as Donald Trump emerged victorious in the 2024 election. | | | | Bonds took a bath in 2022, prompting many investors to give up on the 60/40 investment rule. | | | | Will banks and post offices be open on Veterans Day? Here's what will be open on Monday, Nov. 11. | | | | It's important to know what to expect from Social Security, and there's a fairly easy way to find out. | | | | Your tax bill could be much lower depending on where you retire. | | | | These education careers pay more than teaching, based on earnings tracked by the U.S. Department of Labor's Bureau of Labor Statistics. | | | | Just like Minnie ears and Loungefly bags, some Disney guests like to show their fandom through decorations on vacation. | | | | Donald Trump says foreign nations will pay the costs of tariffs he imposes, but usually it's U.S. consumers who pick up the tab. | | | | Our app gives you award-winning coverage, crosswords, audio storytelling, eNewspaper and more. | | | | | | | Sign up for the news you want | Exclusive newsletters are part of your subscription, don't miss out! We're always working to add benefits for subscribers like you. | | | | | | |
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