RECENT Fixed Income ETFs RESEARCH
High-yield bond funds regained some lost favor this year. Fallen angel bonds could be an extremely attractive value proposition for investors.
TOM BUTCHER: What are the advantages of investing in municipal bonds in the current environment? JIM COLBY: There’s a great deal of uncertainty and volatility in the overall marketplace right…
Disappointing economic growth may have led to complacent inflation expectations.
While high yield bonds could be an avenue for higher yields, they seem risky given the slowing global economy and low oil prices. In such a scenario, preferred stocks could offer some value.
The S&P 500 index, tracked by the SPDR S&P 500 ETF (SPY) and the iShares Core S&P 500 ETF (IVV), rose 8.3% in October.
The ten-year Treasury (IEF) is currently yielding 2.0%, which is much lower than its long-term average of ~4.5%.
Equities in the United States rose for most of the week ended October 2 ahead of the non-farm payrolls report for September. They rose in hopes that moderately strong job additions would continue.
All three US equity indices that we review in this weekly series fell in the week ended September 25—the second successive week in which they recorded a fall.
The exact timing of a rate hike isn’t as important as making sure your portfolio is prepared for an impending rate regime change where rates are expected to rise gradually and remain low for long.
US stocks didn’t have a great start last week. Reports emanating from China drove US markets down sharply, but they rebounded the next day when Microsoft (MSFT) helped them bounce back.
All three US equity indices that we review in this weekly series rebounded in the week ended August 28, 2015, after a disastrous previous week.
Commodities prices, especially for copper, fell in the week ended August 21. The broad equity market also became wary of slumping commodities prices and took a tumble.
For corporates issuing high-grade bonds, the yield curve getting flatter can lead to issuance of longer-duration bonds.
The value of the Chinese yuan was reduced against the US dollar three time last week—on three successive days—by China’s central bank, the People’s Bank of China.
Global bond yields are very low, currently. The ten-year Treasury (IEF) is currently yielding 2.2%, which is much lower than its long-term average of ~4.5%.
All of the three US equity indices that we review in this weekly series fell in the week to August 7, 2015. The S&P 500 Index fell 1.20%.
The US economy grew by 2.3% in 2Q15, according to a Bureau of Economic Analysis advance estimate. Although the rate was lower than expected by some forecasters, it still showed strong economic growth.
Not all corporate results disappointed last week. Amazon’s (AMZN) stock surged after it posted a surprise profit in 2Q15.
A fall in the price of commodities lowered the outlook on inflation in the United States. This fueled gains for investment-grade bonds in the week ended July 24.
The ten-year German and French government bonds are trading at below 1%, while the ten-year gilt is yielding 2%. The ten-year US Treasury is currently trading at 2.3%.