FYI: Right after last year’s U.S. elections, interest rates moved steadily higher as investors positioned themselves for a quickening pace of economic growth. Yet as 2017 unfolded, a stream of economic reports made it clear that the economy wasn’t quite set to break out on the upside. In tandem, inflation gauges suggested a complete lack of pricing pressures. In response, interest rates steadily moved back to pre-election levels.
So where does that leave fixed-income investors? Does it send them back to the playbook that has been in place for much of the past decade? Not necessarily. Central bank policies are starting to shift directions, and various kinds of fixed-income investments will respond in unique ways.
Regards,
Ted
https://www.fa-mag.com/news/-fixed-income-in-2018---a-playbook-for-the-year-ahead-35386.html?print
