I recently wrote about a trend that’s making income investors excited: After years of failing to produce decent returns, bonds are back. Media outlets, including Bloomberg, have picked up on this. And my friends who work on Wall Street are talking about bonds more than I’ve ever heard them do so before. That makes sense, given how strong stocks have been lately. With the S&P 500 up 21% since January as I write this, many folks feel they’re overpriced. That, in turn, makes bonds look more a...
“It is lower risk right now to buy bonds over equities as we believe that long term interest rates have stabilized whereas the stock market remains volatile as the Fed continues to be...
Bond yields have shot higher since March 2022, when the Federal Reserve began raising interest rates. The 10-year Treasury yield has soared to 4.67% Friday (April 26) from 1.72% Feb. 27, 2022. It even hit a 16-year high of 5% last October. Strong economic growth and sticky inflation numbers have sparked the yield rally. While GDP officially expanded only 1.6% in the first quarter, the picture was rosy beneath the surface, economists said. Both consumer spending and business investment registered...
The fixed-income market has been turned on its head in recent years, but there are still opportunities for those looking to buy bonds again.
Learn how to buy bonds with our detailed guide. Discover the types of bonds, where to buy bonds, and bond investing strategies.
So where does that leave bonds now? Potentially in a very attractive place. Many of the... Don’t miss: ‘Buy the latte,’ says CFP—save more by focusing on ‘needle movers’ instead
The fundamental outlook for bonds remains questionable at best. The leading indicators of growth and inflation for 2024 suggest both dynamics could put upside pressure on yields. Sentiment toward bonds remains bullish as the consensus is for yields to move lower. However, given hedge funds and CTAs are short bond futures, there is scope for a squeeze higher, but it will likely prove temporary. For a significant rally in long-duration bonds to occur, we need to see a deep recession (which will li...
Interest rate hikes by the Federal Reserve have pushed bond yields near levels not seen in more than a decade. But following the Fed’s decision to cut interest rates by 50 basis points in September 2024, should investors be looking to increase or decrease their bond exposure? · For most of the past 15 years, interest rates have hovered near historical lows. The Fed cut interest rates following the 2008 financial crisis and inflation remained muted, which allowed the Fed to keep rates at low ...
Many savers will buy I Bonds in late October in a last-minute crush to lock up extraordinary rates. But some savers will face unexpected glitches.
One of the best current deals in the bond market—Treasury Series I savings bonds—is likely to get less attractive in November when a new rate on the popular investments is set.