2018 Fixed Income Outlook
Expect Flat to Low Returns
Given our outlook for the economy, Federal Reserve (Fed) policy, and the potential for fiscal stimulus, we expect the fixed income market to be under pressure in the coming year. Moderate gross domestic product (GDP) growth and rising inflation may lead to gradually higher interest rates, limiting bond returns. Investors in global fixed income markets can no longer count on central banks to support the asset class. That said, bonds remain an important element of a well-balanced portfolio, serving to provide protection should we experience equity market pullbacks.
Rising Interest Rates, a Fa... Read more