Stress in the bank sector? Sure, okay.
Uncertainty spawned by the U.S debt ceiling? Yep, no one can legitimately propose an argument to the contrary.
Political uncertainly festering in Russia? Well, yeah, if you’ve watched even a scintilla of news lately.
Despite that exhaustive list, the global economy’s hanging tough, strutting its resilience, according to gsam.com, which believes a restored allocation to core fixed income can help boost the ability to reinforce the resilience off portfolios to periods of bearish sentiments. That’s especially in light of a bounce in yields which have bolstered the protective power and income benefits of high quality bonds.
Meantime, the economy continues to perform better than expected, seemingly shucking aside rates hikes that have been a mainstay since last March, according to privatewealth-insights-bmo.com.
Consumers, buoyed by high employment, not to mention escalating wages, have hung tough.
For this cycle, with Canadian rates riding high and the stream of rate hikes -- for the most part, at least -a thing of the past, the time to take another look at fixed income allocations is right.