SUMMARY
The US Federal Reserve’s projected short-term interest rate increases in the year ahead will roughly match the largest for any annual period in history. Adding bonds to portfolios now may make sense.
The US Federal Reserve’s projected short-term interest rate increases in the year ahead will roughly match the largest for any annual period in history. Adding bonds to portfolios now may make sense.
about facesin history. Taken at its word, the Fed will begin
rapidQuantitative Tightening (QT) roughly 2 months after halting Quantitative Easing (QE).
negative correlationsin asset back into portfolios. When bonds are expensive and stocks are, too, asset allocation between them provides fewer benefits. With bonds having repriced so massively, the asset allocation value of bonds has risen proportionately.