Despite the heavy dose of market uncertainty swirling in the capital markets, bonds rose during the month of January. It's an ideal entry point for prospective bond investors looking to attain exposure.
The prospect of rate cuts may be in jeopardy, as inflation appears to be stickier than anticipated. If economic growth does eventually subside and the Fed continues its rate-cutting path, investors will want to build a portfolio that emphasizes income.
In an interview with Salim Ramji, Vanguard's new CEO, he told me, “We have an outstanding active fixed income capability.” I followed up with Vanguard and wasn't surprised that their active bond funds had bested peers since they have much lower fees.
While yields remained a prime feature for bonds in 2024, the Fed's monetary policy easing didn't do favors for price appreciation. However, bond investors could reap those rewards if they focus on the long-term horizon.
After another incredible gain of stock market gains (the S&P 500 could finish 2024 with more than a 25% return!
The stock market has been on a tear over the past couple of years. The S&P 500 is on track to deliver back-to-back years of more than 20% gains, while the tech-heavy Nasdaq-100 index has nearly doubled since the start of 2023.
Retirees could be in for tougher sledding going into 2025 as calls for lower prospective returns over the next year and decades grow louder.
Building a powerful investment portfolio doesn't require complex strategies or dozens of holdings. A straightforward approach using three exchange-traded funds (ETFs) can deliver remarkable results through market cycles.
With a new presidential administration slated to take office in 2025, fixed income investors may be feeling the angst of uncertainty when it comes to their bond portfolios. However, Vanguard sees the risk/return trade-off for bonds as favorable.
Fixed income investors already invested in bonds could see a holiday treat this year with a Christmas rally. For those still pondering the idea, now could be an ideal time for bond exposure.
On Thursday, Vanguard released two new active bond ETFs. These funds offer different perspectives in terms of municipal bond investing.
Emerging market (EM) assets are benefiting from a post-election rally as investors are now more clear on what the incoming presidential administration will look like. In the meantime, if emerging market assets continue trending higher, consider bond exposure.