Do Your Investments Pass the 5.45% Test? Here's How To Avoid Leaving Money On The Table
Portfolio Pulse from Daniel Anderson
The article discusses the concept of opportunity cost and hurdle rates in investment decisions. It emphasizes the importance of balancing risk and reward, and considering the minimum rate of return expected from an investment. The article mentions that with short-term U.S. Treasuries currently paying 5.45% at zero risk, investors should scrutinize their portfolios to ensure their investments can beat this rate. It specifically mentions that several big-name equities, including Johnson & Johnson (JNJ), AbbVie Inc. (ABBV), Altria Group, Inc. (MO), and Square, Inc. (SQ), have not met this mark.
August 04, 2023 | 9:08 am
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NEGATIVE IMPACT
AbbVie Inc. is among the equities that have not met the 5.45% hurdle rate.
The article suggests that investors should consider whether their investments can beat the 5.45% return offered by short-term U.S. Treasuries. As ABBV has not met this mark, it may be seen as underperforming, potentially leading to selling pressure.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEGATIVE IMPACT
Johnson & Johnson has been mentioned as one of the big-name equities that have not met the 5.45% hurdle rate.
The article suggests that investors should consider whether their investments can beat the 5.45% return offered by short-term U.S. Treasuries. As JNJ has not met this mark, it may be seen as underperforming, potentially leading to selling pressure.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEGATIVE IMPACT
Altria Group, Inc. is among the equities that have not met the 5.45% hurdle rate.
The article suggests that investors should consider whether their investments can beat the 5.45% return offered by short-term U.S. Treasuries. As MO has not met this mark, it may be seen as underperforming, potentially leading to selling pressure.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEGATIVE IMPACT
Square, Inc. is among the equities that have not met the 5.45% hurdle rate.
The article suggests that investors should consider whether their investments can beat the 5.45% return offered by short-term U.S. Treasuries. As SQ has not met this mark, it may be seen as underperforming, potentially leading to selling pressure.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75