Volatility And Dispersion Offer Tax-Benefit Opportunities
Fueled by volatility and dispersion, investment strategies that incorporate tax-loss harvesting may help improve after-tax outcomes in both up and down markets.
For illustrative purposes only. There is no guarantee that these results will be achieved.
Source: Bloomberg, Morningstar, PGIM Investments, as of 12/31/2023. Short-Term Bonds represented by Bloomberg Short-Term U.S. Aggregate Bond Index and Intermediate-Term Bonds represented by Bloomberg U.S. Aggregate Bond Index. Analysis is for illustrative purposes only, with yield-to-worst as the starting point for one-year return expectations and the impact of rate increase or decrease in the yield curve given the duration of each index. Investors cannot invest directly in an index.
Jul 16, 2024
Fueled by volatility and dispersion, investment strategies that incorporate tax-loss harvesting may help improve after-tax outcomes in both up and down markets.
With the end of the Fed’s tightening cycle near, allocating to bonds now may offer greater returns than waiting until later to invest.
International stocks with strong earnings growth may still present a good entry point for investors.
Bloomberg U.S. Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. It covers the U.S. investment-grade, fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. Bloomberg Short-Term U.S. Aggregate Bond Index is a subset of the Bloomberg U.S. Aggregate Bond Index, consisting U.S. dollar denominated investment-grade taxable bonds with remaining effective maturities between one and five years. Investors cannot invest directly into an index.
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