Economic Recovery Creates Opportunities in Bonds
While conventional wisdom would suggest that the U.S. economic recovery will put steady upward pressure on interest rates, this time may be different. Unlike the economic recoveries of the 1980s and 1990s, a host of factors in place today should keep long-term interest rates lower during this recovery than during most of the past thirty years. As a result, plan sponsors may continue to reap both solid returns and diversification benefits from their fixed income allocations.