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Market volatility was cited by 79% of financial advisors as the biggest challenge for investors during 2012, according to a survey conducted by Putnam. It’s easy to see why. Stock market volatility has been much higher since the 2007 subprime crisis compared with earlier years, making risk a major concern for portfolio strategies. A large
We continue to find a number of reasons for a positive outlook on the high-yield bond sector. First, the long-term average spread in the high-yield market is close to 500 basis points, so today high-yield spreads are at above-average levels. But at the same time, the fundamental backdrop for high-yield corporate bonds continues to be
Amid a moderate economic recovery, cautious spending by corporations may make high-yield securities more attractive as investments.
We believe municipal bond investments are potentially quite attractive: Defaults have remained low, contrary to overblown predictions in the media; spreads are attractive on a historical basis; and muni/Treasury ratios are still above historical averages. Defaults in the municipal bond market are generally misunderstood. While defaults do happen, they occur with far less frequency than
Although housing has been on its back for several years, real estate trends and company fundamentals suggest a contrarian case for housing stocks.
The classic strategic reasons to own municipal bonds still hold true: They generally have low correlations to other asset classes and offer a meaningful tax advantage to investors — features that we believe are unlikely to change in the near term. However, the municipal bond market has experienced a significant shift over the past several
European stocks may have a chance of recovery if political leaders can make progress on resolving the debt issue, but analyzing earnings will be critical for investors to navigate risk.
Spreads on high-yield bonds widened to attractive levels even as the expected corporate default rate has remained subdued.
Are you living in a high-tax state? Financial planners suggest that finding the ideal retirement spot means weighing a number of pros and cons about each state. This interactive graphic shows how your state stacks up on taxes and other metrics.