- The market has broadly been under fire this year. While equities have rallied from time to time, the story behind bonds has been consistently negative.
- With this reality setting in, it is understandably hard to find a bullish argument. With the Fed acting more hawkish by the day, that also clouds the outlook.
- However, the contrarian in me believes there is value developing at this juncture. The mood in fixed-income is almost entirely negative, which suggests opportunity.
- The upside to declining bond prices is that yields have risen substantially, especially on a year-over-year basis. This means investors who buy now can absorb some further downside and still see a positive return.
For further details see:
Is There Value In Fixed Income? Some Signs Say Yes