With interest rates rising, Treasury bond prices can fall – because rates and prices move in opposite directions.
Timothy Chubb, chief investment officer of Univest Wealth Management in King of Prussia, said he's avoiding Treasury bonds because of the potential volatility.
"We hold some Treasuries in some mutual funds, but we're not actively buying" Treasuries otherwise, he said.
Part of his worry about Treasuries is that the Federal Reserve is still manipulating the bond market, while foreign investors are seeking a haven in Treasuries.
"The Fed is reinvesting billions of dollars to keep the yield curve in a specific range, but at the same time, investors around the rest of the world have rates that are very low. A Japanese pension fund would be happy to buy the 30-year Treasury at 3 percent. So there are huge forces at work" moving long-term bond prices, he said.
The yield curve shows how interest rates on bonds of equal credit quality change as the time until the bonds mature increases.
For income, Chubb points out that telecommunications companies like Verizon, AT&T, and CenturyLink offer decent stock dividends – and that telecommunications as a sector may see more buyers as a result of the Standard & Poor's 500-stock index reconstituting the tech sector as part of the benchmark.
"Because of this rotation into these names, there will be a nice tailwind for the old-fashioned communications companies," Chubb said.
Finally, the run-up to the November election is on his radar.
"There are only eight weeks left until the election, consumer confidence is high, unemployment is under 4 percent, and disposable income as a percentage of debt is at a 10-year low. My only worry is that these latest rounds of tariffs will be inflationary," he said.
"Tariffs could put pressure on inflation and create a false positive for the Fed, which in turn could snowball into inflation hitting 3 percent. That could then lead to a mild recession," he added.
UBS in Philadelphia will host an event in conjunction with 100 Women in Finance, organized by Julie Fox, managing director at UBS Private Wealth Management in Philadelphia, and Amanda Pullinger, CEO of 100 Women in Finance.
The event, "Cybersecurity and the Finance Industry," will take place at 5:30 p.m. Wednesday, Sept. 12, in UBS's offices at 1735 Market St., 36th Floor, It will include a discussion with Charlie Gilbert and James Hamilton from Gavin De Becker & Associates LP., drawing upon their experiences in the CIA and FBI.
While 100WF doesn't have an chapter in Philly yet, there may be demand given the huge presence of financial firms in the area.
"We make sure there's interest and a need for us," said Pullinger. "We're all about empowering women in finance."