«Bond king» Jeffrey Gundlach told CNBC on Monday that investors should be defensive, especially in the midst of a «
weak bond market» and a «broadly sideways» stock market.
Not exact matches
If my capital
market expectations are for a good
bond market and a
weak stock
market in the next year (such as this year), I don't necessarily want to change any of the stocks or
bonds that I hold.
One reason for looking at junk
bonds is that the firms that issue junk
bonds are closer on the risk continuum to a large mass of firms that are too small and too
weak to issue
bonds at all, and that rely on banks or the informal capital
market for funds.
yields will hit the highs on close end of the day... equity
markets setting up to be slammed tomorrow maybe but today they have run over
weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising
bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means for valuations
so now the issue is whether the
bond market (or macro hedge funds) eased too much thinking the Fed would choke off liquidity and now is staring at still a
weaker dollar and high commodity prices indicating an elevated level of excess liquidity.
The emerging
market slaughter will continue, especially for countries with
weaker fundamentals; their equities, currency and local currency
bonds and foreign currency
bonds bearish slump has not yet reached the bottom.
«Some hybrid funds may consider selling their stock investments for fund redemption due to
weak liquidity for their
bond investments following the
bond market and money
market crash,» analysts at Credit Suisse said in a note dated Friday.
Persistently low interest rates,
weak inflation and a lack of supply relative to demand for
bonds leaves Rieder advocating for equities rather than the fixed income
market.
Financial institutions»
bond issuance was also
weaker in the December quarter, particularly issuance in offshore
markets.
Friday's
weaker than expected JOBS REPORT caused AGITA in the
BOND and EQUITY
MARKETS.
Because
weak job growth may indicate a slowing U.S. economy, investors poured into the relative safety of the
bond market.
With a little forethought we can use an underappreciated aspect of some
bonds to provide welcome balance in the portfolio at those times when it is needed the most, in times of
weak equity
markets.
However, the
weak performance overall and the deceleration in some of the indicators that I just referred to is not unnoticed by the
bond market.
Beware the coming bear
market in
bonds, as the Fed appears to be wrong about the
weak job
market, James Breech argues.
I know some
market participants are taking the view that inflation will remain
weak and further rate hikes will invert the curve, cause a recession, and we will see even lower yields on long term
bonds.
CORPORATE FINANCING NEWS By Gordon Platt Neither the consequent volatility in emerging
markets nor
weak US employment data will deter the Federal Reserve from continuing to gradually reduce its purchases of
bonds, analysts say.
«This article concludes that there are few signs that groups with traditionally
weaker bonds to the labor
market are less motivated to work if they live in generous and activating welfare states.
Dividend paying stocks have been very popular with investors in recent years due to
weak returns in the
bond market.
The spread on the
bond is
weak single - B, which is fair in my opinion for the risks that you would be taking on relative to other securities like it in the
market.
The concentration of
bonds trading in the secondary
market rises the
weaker the credit quality of
bonds.
Stock investors, already grappling with the impact of more restrictive trade policies and rising
bond yields, now have another concern: a historically
weak time of year for the
market.
But this formula of stable, ultra-conservative dividend stocks and corporate
bonds,
bonds that will pay their interest and return $ 1,000 in principal at maturity no matter what happens in the
market, virtually eliminates the effects of a prolonged
weak market.
Persistently low interest rates,
weak inflation and a lack of supply relative to demand for
bonds leaves Rieder advocating for equities rather than the fixed income
market.
Investors may be tempted to offset this
weaker amplification from investment - grade
bonds by substituting junk
bonds, high - dividend stocks, emerging
market bonds, or other high - yield assets.
Fixed Income May was a
weak month for many areas of the fixed income
market, especially high - yield (low grade) corporate
bonds, emerging
markets bonds and some foreign
bonds.
While the
bond market continues to foreshadow a very
weak economic recovery risky asset investors can't get enough.
Similarly, the rate for a 15 year fixed mortgage decreased to 3.54 % despite the reduction in
bond yields and signs that show a
weaker economic standing than what is expected said the Primary Mortgage
Market Survey of Freddie Mac.
The relationship of yield to the real return of
bonds is much
weaker because the
market - implied inflation rate at the purchase date could be vastly different from realized inflation over the 10 - year horizon.
I'm still long a moderate amount of the iShares 20 + Year Treasury
Bond (TLT), for myself and clients — it is difficult to see too much of a bear
market with monetary velocity so
weak.
The equity
markets are again under pressure while yields on Treasury
bonds have collapsed, reflecting that
market's growing concerns about the
weak economic outlook.
When Emerging
Market Debts (Local Currency) Perform Poorly A downturn in the local currency or
weak economic progress will hurt the performance of these
bonds.