By Gershon Distenfeld, Noelle Chiang
It's easy to get spooked in late-cycle markets. But we think there's a way to de-risk your portfolio and still generate a decent level of income - no magic spells necessary.
Investors often do one of the following things when markets are in the later stages of the credit cycle:
- Some react to slower growth and falling interest rates by stretching for more yield in CCC-rated corporate bonds, preferred stocks or other higher-risk, lower-quality assets. And they often do it by investing in concentrated, single-sector strategies that lack diversification.
- Others