We see central banks nearing the limits of extraordinary monetary easing, low returns across most asset classes as well as higher equity and
bond volatility amid looming political risks and Federal Reserve (Fed) tightening.
Not exact matches
Amid the worst market
volatility since the Great Recession, it's fallen in value along with stocks and
bonds.
But
amid the optimism, some investors also have an eye on potential causes for concern, including the end of the bull run for
bonds and persistent low
volatility in markets.
And perhaps more importantly, some hedged international
bond exposure can potentially reduce a portfolio's overall
volatility amid rocky markets.
Among US government
bond ETFs, short - term
bond ETFs accumulated more than $ 6 billion in flows, while long - term
bond ETFs saw $ 0.3 billion in outflows
amid changes in
volatility and shifting interest rate expectations (see US government
bond ETF flow).
And perhaps more importantly, some hedged international
bond exposure can potentially reduce a portfolio's overall
volatility amid rocky markets.
Investors worldwide struggled to find high returns in the wake of the global financial crisis
amid interest rates languishing near record lows and bouts of elevated
volatility in the stock and
bond markets.