The first official currency issued by a government was a coin minted in ancient Lydia around 600 BCE. It took about 1,700 years for the first sovereign paper money to emerge in China. Since that time, hundreds of different currencies have appeared.
Given the enormous federal debt and trillion dollar deficits, one might expect the value of the dollar to decline. Instead, we have seen the opposite.
All investments involve some degree of risk. The key to success is taking action to understand it and to find the level with which you are comfortable. This is easier said than done, and many investors learn too late that their appetite for risk is actually lower than their allocation reflects.
No one panics when stocks move higher, but periods of declining value call for a reminder of the proper perspective regarding naturally cyclical market behavior.
In an environment of declining rates and low absolute returns, preferred shares can offer a compelling option for investors seeking relatively high income and some capital preservation.