Displaying items by tag: bear market

(New York)

For anyone who has enjoyed the big rally in tech shares after the rough February through March period, JP Morgan has bad news…see the full story on our partner Magnifi’s site

(New York)

The stock market has been on one of the most historic recoveries in market history, but…see the full story on our partner Magnifi’s site

(New York)

Bank of America’s Sell-side indicator that tracks equity allocation increased to…see the full story on our partner Magnifi’s site

(New York)

Bond yields are on the rise, from long-term Treasuries to corporate bonds. However, Ray Dalio, founder of Bridgewater, says…see the full story on our partner Magnifi’s site

(New York)

Some analysts think that investment grade (IG) bonds might see some very rough times ahead. In fact, one analyst from Pavilion Global Markets says that IG bonds have “virtually no value proposition under any given economic scenario”. Think about the following package of information taken as a whole: 1. iShares iBoxx $ Investment Grade Corporate Bond ETF has lost 6.6% this year; 2. IG yields are well below 6.6%; 3. Investors have been pouring money in IG bond mutual funds and ETFs. So IG bonds are losing value much more quickly than they are yielding, which spells a recipe for disaster to some. According to the same analyst “be mindful of the potential for significant outflows in the days to come”.

FINSUM: We can’t say we agree here. While fixed income as a whole looks fragile right now, the losses have provided room for IG bonds to appreciate as the economy and earnings improve. We do not think it will be all bad news.