To paraphrase Mark Twain, recent reports of the bond market’s death have been greatly exaggerated. That’s the theme of a new white paper by Capital Group’s head of fixed income Mike Gitlin, portfolio manager Ritchie Tuazon and investment analyst Tom Hollenberg.
While Donald Trump’s election win does change aspects of fiscal and perhaps monetary policy, they believe that the fundamentals for bonds are solid, and that fixed income should remain a core component of a balanced investment portfolio.
Investment advisory is an industry facing disruption from multiple angles. That was one of the major themes at Charles Schwab’s IMPACT®2016 conference, which concluded on Thursday. The event, which attracted close to 2,000 registered investment advisors, featured education sessions, keynote speakers and an exhibition to help advisors stay at the top of their game. Other big topics of discussion included politics, monetary policy and inflation.
Markets entered a new phase in late 2014 as the Federal Reserve took its first step toward normalizing policy. What separates this most recent environment from the prior period immediately following the financial crisis is the fact that, despite ongoing global central bank easing and accommodation, the macroeconomic backdrop and financial markets seem to be experiencing diminished benefits.