It is hard to believe that just a year ago, the U.S. economy was virtually in free fall, a victim of the pitiless coronavirus pandemic. Unemployment rates soared, yields on Treasuries plunged to record lows, and fear gripped financial markets. Today the environment is nearly the reverse: Economic growth is gaining steam, helped along by trillions of dollars of federal government stimulus; inflation is picking up; yields on Treasuries are rising; and investors are embracing risk again. // Although the economic story is brightening, the same cannot be said for investors seeking income and yield. The S&P 500 index of large-company stocks continues to establish record highs but yields only 1.4%, one of the lowest rates in market history. Interest rates on investment-grade bonds such as Treasuries and high-grade corporate debt are still remarkably low by historical standards and vulnerable to rising rates (bond prices and interest rates move in opposite directions). For example, iShares 20+ Year Treasury Bond, an exchange-traded fund that holds a basket of long-term Treasuries, has lost 12.5% for the year to date, which is six times its yield. Matt Pallai, head of Harbor Funds’ multi-asset solutions, says, “What we see now across the world is that income is one of the most scarce resources.”
هذه القصة مأخوذة من طبعة June 2021 من Kiplinger's Personal Finance.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة June 2021 من Kiplinger's Personal Finance.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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