- Fixed-income team sees opportunities in corporates, munis, EM
- But not all market sectors have fully priced in slower economy
Investors should look to bonds for income and as a hedge to equities again after fixed-income assets suffered a “horror show” first half, Vanguard Group Inc. said.
The $7.1 trillion money manager sees the TINA mantra — there is no alternative to equities — as a thing of the past with a weakening economy likely validating bonds as a portfolio diversifier, the firm’s fixed-income team led by Sara Devereux wrote in a note on Monday.
“Corporates, municipals, high yield, and emerging markets present more opportunity than any time in the recent past,” according to the Vanguard team.
Bloomberg Markets
By David Caleb Mutua
July 25, 2022