Bond Investing Amid Falling Rates and a Slowing Economy

2019 Midyear Insights

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By John Lovito - July 5, 2019

A lot has changed in the first half of this year. In 2018, the Federal Reserve (Fed) was committed to raising rates and things were looking up for the U.S. economy. But now, it's a much different story.

The Fed may begin to ease rates, potentially as soon as July. We’re seeing a slowdown in global growth, particularly in Europe and China, and optimism for the U.S. has been tempered by trade tensions with China. Even if this uncertainty is already factored into the markets, growth prospects will likely be less robust than they would have if we didn’t have a trade conflict.

So what does this mean for bonds? We don’t expect a global recession, but from a risk perspective, we want to remain cautious in our portfolios. Click on my video below for more insight on how we’re positioning our fixed income assets.

Transcript

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