Out of eleven sessions so far this year, the S&P 500
SPX
has managed to close higher in three (and one just barely). But of course, the year is young. As for the bond market, the last two years haven’t been amazing for investors, but some are predicting 2024 to be the year of the bond, partly because the asset class tends to shift into favor when the Fed’s rate hiking cycle is over.
Bonds over stocks this year is the way to go, says our call of the day from Nadège Dufossé, global head of multiasset at Candriam, an asset-management company and subsidiary of New York Life. With stocks, “you are not paid for the risks you take. In the bond market, you have an expected return that is not very high, but you have a lower risk level and certainly your bonds will edge your equity if you have both in a diversified portfolio,” Dufossé told MarketWatch in an interview on Wednesday. Unlike some, she doesn’t expect six or seven Fed rate cuts this year. Such a path “would mean that …
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SPX
has managed to close higher in three (and one just barely). But of course, the year is young. As for the bond market, the last two years haven’t been amazing for investors, but some are predicting 2024 to be the year of the bond, partly because the asset class tends to shift into favor when the Fed’s rate hiking cycle is over.
Bonds over stocks this year is the way to go, says our call of the day from Nadège Dufossé, global head of multiasset at Candriam, an asset-management company and subsidiary of New York Life. With stocks, “you are not paid for the risks you take. In the bond market, you have an expected return that is not very high, but you have a lower risk level and certainly your bonds will edge your equity if you have both in a diversified portfolio,” Dufossé told MarketWatch in an interview on Wednesday. Unlike some, she doesn’t expect six or seven Fed rate cuts this year. Such a path “would mean that …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]