Backed against the wall….

Posted September 26, 2014 by admin. tags:Tags: , , ,
The chains

Hands chained up

We, along with many others, have been cautious about the bond market for some time.  As the sun sets on QE the angst over when the Fed will start to raise rates and by how much is rising.  Markets always like to price things in ahead of time and right now it seems the equity market’s recent nervousness could be due in some part to this interest rate uncertainty.   The bond market however has not moved much yet.  Many, including us, thought that the bonds would have a difficult year as they start to price in the rate increases.  Instead, bonds have (so far) have had a good year surprising many.  Alas, the inevitable is coming though and the window for bond gains is closing as we creep toward June of next year which is the most accepted time that the rate increases will begin.  Any equity market weakness will give bonds more time to put off the reckoning.

Any rally in bonds should be sold as their time is getting short.  I think you’re seeing the cracks appear in the high yield market right now.  Historically, high yield is more correlated with the equity market and not that sensitive to interest rate risk but at these low rates it now contains interest rate risk as well.  With yields still below six percent the reward is just not worth the risk for holding junk bonds.

Although we don’t find bonds attractive it doesn’t mean that a bloodbath is coming.  It will probably be more like death by a thousand cuts.  The Fed will be very slow and steady in raising rates as to minimize market disruption.  After all, they do hold about $4.5 trillion of bonds!  The first one to two percent moves from the bottom will be the most painful but in a gradual manner as mentioned.  A year from now interest rate could be a half to one percent higher.  Take a look at the duration of your bond holdings and compare it to your yield – you’ll be hard pressed to find anything that would come out positive…

Written by Nathan White, Chief Investment Officer of Paragon Wealth Management


Disclaimer Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy. All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.

The Live Your Dream Foundation

Posted September 12, 2014 by admin. tags:Tags: , , , , ,
LYD Foundation Logo

As many of you know, Paragon Wealth Management sponsors the Live Your Dream Foundation. We decided to post their email regarding the wonderful success they had this year at their fundraising event, the Raft and Run. All of the proceeds of their event goes to scholarships for single mothers. Here is what they had to say: Paragon Wealth Management is a Proud Sponsor of the   We would like to thank our 225 Participants, our 50 Volunteers and our 26 Sponsors of this years Pioneer Day Raft and Run. We would also like to give a shoutout and express our gratitude to Paragon Wealth Management and the Barbara Barrington Jones Family Foundation for their continued sponsorship.  Without this support the Live Your Dream Foundation would not be able to continue its mission of Empowering Single Mothers in their quest for a college education and bettering the lives of their families and our communities. Below is a link to this years video that was filmed, edited and generously donated by GMP Movies. The video features the excitement of the 2014 Raft and Run with a message of hope for two single moms who received scholarships that day from three Utah County-based companies; IdealShape, Sundance Bay and Sundance Debt Partners, along with Utah’s new Attorney General Sean Reyes. Click here to watch the video, forward this email to friends and share on social media! Click here to read the short bio’s of Tatiana Chavez and Tera Ettinger, the two single moms in the video who received the scholarships.

Paragon’s Client Social Dinner

Posted September 3, 2014 by admin. tags:Tags: , , , ,
Picture of the 2014 Client Appreciation Dinner

Thank you all for coming to Paragon’s Client Social Dinner! We all had fun visiting and giving away some great prizes! We hope to see you all again next year!


Utah Valley BusinessQ Magazine

Posted September 1, 2014 by paragon. tags:Tags: , , , , , ,
The Pioneer Day Raft and Run

Fall 2014

The Q List.

Our favorite items of business this quarter.

Life Boats

Now this floats our boat.

The Second annual Raft and Run – started by Paragon Wealth Management in Provo – raised more then $40, 000 at its event this past Pioneer Day.

All Proceeds from the five-mile raft and 5k road race go to the Live Your Dream Scholarship Foundation, which helps single mothers in difficult situations pursue their education. The money raised at the event will provide at least 14 scholarships to single moms in need.

For more information, visit

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