Fixed Income in the ‘Next Normal’: Revisiting Core Bonds

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The piece provides an in-depth analysis of the shifting dynamics in the fixed income landscape. It highlights the dramatic shift from a low-yield environment, influenced by the predictable accommodative nature of central banks, to an era of higher expected inflation and reluctancy from central banks to ease interest rates.

The Role of Fixed Income Investments in the New Economic Climate

The text further suggests investors reconsider the risk/return profile of their portfolios in light of these changes. Emphasizing the potential for higher yields, a more balanced approach from the US Federal Reserve, and a healthier economic cycle, it paints a promising picture for fixed income investments, notably their traditional roles in generating income and offering diversification from equities.

To delve deeper into these evolving trends and better inform your investment decisions, we invite you to "Read report".