HIGH GROWTH STOCKS ON SALE AFTER RECENT SELL-OFF
Lower prices from the recent sell-off may present good entry points for quality companies able to deliver consistently strong earnings growth.
Short-duration high yield can mitigate rate, credit, and equity risks
- Investors challenged by market volatility from rising rates are seeking ways to mitigate interest, credit, and equity risks.
- Historically, shorter-duration higher-rated high yield bonds have delivered strong, less volatile returns, providing 96% of the return of high yield bonds with 70% of the volatility, and 68% of the return of stocks with 40% of the volatility.
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SPOTLIGHT | On the Markets
Data illustrating current market conditions and trends—and what they mean for investors
Stronger returns likely to follow recent high yield bond declines
The recent high yield bond selloff may present an attractive buying opportunity and be a potential prelude to stronger returns in the 12 months to come.
Equity markets may see strong second-half rally after recent selloff
Nervous investors may want to sit tight, as equity markets could see a strong rebound in the second half of 2022.
Rising Yields May Signal Better Future Returns for High Yield Bonds
Now may be a good entry point for high yield bonds as higher yields may signal stronger future returns.
Definition and Index: Short duration, higher-rated high yield (SDHY) bonds: Bloomberg Ba/B 1-5Yr 1% Issuer Capped Index represents the performance of U.S. short duration, higher-rated high yield bonds. High Yield (HY) Bonds: Bloomberg U.S. Corporate High Yield Index measures the market of non-investment-grade, U.S. dollar-denominated, fixed rate, taxable corporate bonds. Stocks: S&P 500 Index is an unmanaged index of 500 common stocks of large U.S. companies, weighted by market capitalization. Indices are unmanaged and are provided for informational purposes only. Investors cannot directly invest in an index. Past performance does not guarantee future results.
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