Summary
- 2021 will be a challenging year for bond investors, as we are starting off with low interest rates and rising inflation, explains Marvin Appel of Signalert Asset Management.
- As a result, I believe the most productive strategy for 2021 will be to search for higher yields in the form of credit risk rather than in the form of longer duration.
- I recommend corporate and municipal high-yield bond funds, and corporate floating rate bond funds.
- In this article, I will review the inflation outlook and the historical precedent that suggests our current climate will be unfavorable for investment-grade bonds.
Seeking Alpha
Feb. 02, 2021