Remember, as bond yields rise, bond prices fall, as do the prices of
bond proxies such as utilities, REITs and other high - yielding stocks.
When rates rise, as they have done, so - called
bond proxies such as consumer staples typically fall.
Not exact matches
Rising inflation and interest rates should benefit cyclical sectors,
such as Financials, relative to
bond proxies,» Kostin added.
We advocate reducing popular positions where prices have moved beyond fundamentals (examples are gilts and
bond -
proxies such as utility stocks).
After a relentless search for yield, investors have piled into dividend - yielding, defensive stocks, or what we call «
bond market
proxies,» making many
such segments extremely expensive.
Higher oil prices would reinforce current market trends based on reflation: rising long - term
bond yields and a shift out of perceived safer assets —
bond proxies and low - volatility stocks — and into cyclical assets
such as EM.
One of the often - heard concerns about rising rates is the negative effect it could have on «
bond proxy» sectors
such as utilities and REITs.
Stocks from «
bond proxy» sectors
such as tobacco could be bad for your wealth, but many income funds are full of them.
The importance of the 10 - year Treasury
bond yield goes beyond the return on the instrument as it is used as a
proxy for many other important financial matters,
such as mortgages and investor confidence.
I would continue to advocate that investors should underweight
bonds and
bond market
proxies,
such as utilities and consumer staples.