FYI: JPMorgan Chase & Co.’s Jamie Dimon may think that benchmark Treasury yields could hit 5 percent or more. But try telling that to ETF buyers.
Investors are piling into exchange-traded funds tracking areas that traditionally do well when interest rates stay low, like real estate investment trusts, utilities stocks and long-dated Treasury bonds. It’s a risky bet that yields will stay low, according to Chris Zaccarelli, the chief investment officer at Independence Advisor Alliance. The logic is that as warnings of trade wars increase, some investors are speculating the disputes could cause the Federal Reserve to scale back its plans for future rate hikes.
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-09-14/dimon-sees-treasury-yields-at-5-etf-investors-aren-t-buying-it?srnd=etfs