Is the bull market for bonds over? With the Federal Reserve poised to raise rates in 2017, should one sell their fixed Income? Many sophisticated investors believe the answer to these two questions is a firm “No.” In any environment, bonds perform several roles in overall asset allocation. Additionally, not all bonds are hurt as rates rise, especially if rates rise more slowly than usual.
Can India maintain its status as the world’s fastest-growing economy after a massive currency recall in late 2016 left consumers and businesses strapped for cash? From my home base in Mumbai, I’ve traveled the country over the past couple months to gauge the sentiment of businesspeople, assessing the impact of Prime Minister Narendra Modi’s demonetization campaign aimed at tackling corruption.
In the short time since the new U.S. presidential administration was installed, there has been a flurry of policy announcements, and even more policy speculation, spanning a multitude of areas. In the process, an interesting disconnect has emerged between the political and financial worlds.
U.S. stocks would seem to be expensive. Markets are at historic highs. Investors are currently paying more than 21 times what companies in the Standard & Poor’s 500 have earned over the past 12 months, according to operating earnings from S&P Dow Jones Indices. Investors are paying well above the 18.8 average multiple they’ve paid for stocks since 1988, S&P data shows.