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☆ History says doing nothing and avoiding rush to cash will eventually boost returns
▼ + stars: | 2022-10-11 | by ( Bob Pisani | ) www.cnbc.com time to read: +2 min

"Investors are seeking shelter in cash amid a volatile market and fears of a recession," Mark Haefele, chief investment officer at UBS Global Wealth Management said in a note to clients Tuesday morning. Haefele reminds everyone about the value of staying invested and the folly of market timing. Not being in the market on the 5 best days since 1970 reduces your return from $138,908 to $90,171. The takeaway: If you're not in the market on the most important up days, your returns are markedly lower. The message: The best strategy would be to determine a long-term plan and stick with it, and ignore the urge to "do something."

☆ Investors are dipping a toe back into high-yield ETFs. Here's what you need to know
▼ + stars: | 2022-10-09 | by ( Jesse Pound | ) www.cnbc.com time to read: +5 min

Potentially, that marks the start of a reversal from this year's pattern, which has seen sharp outflows from high yield funds. High yield bond funds have been beaten down this year, like the rest of fixed income. FlexShares' offerings include the actively managed High Yield Value-Scored Bond Index Fund (HYGV) and the ESG & Climate High Yield Corporate Core Index Fund (FEHY) . To be sure, growing concerns about bankruptcies can hurt high yield investors, even if they never materialize. Because the underlying companies are also essentially investment funds, investors are paying management for both the companies and the ETFs.

There were two main elements to the blowup in so-called Liability Driven Investment (LDI) strategies for British pension funds over the end of the third quarter. And yet it's private credit - ranging from direct corporate lending vehicles to leveraged loans - where arguably least is known. The rising rate environment alone has made some wonder how resilient private credit strategies given they don't have to mark to market regularly. To cope with illiquidity, the survey showed investors increasingly pairing private credit allocations with cash or more liquid core fixed income instruments. The boom in private credit assets has been spectacular - but booms don't last forever and shocks like the ones we've seen in recent weeks are at least a shot across the bow.

☆ Analysis: Goodbye, TINA: higher yields muddy outlook for struggling U.S. stocks
▼ + stars: | 2022-09-29 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +4 min

NEW YORK, Sept 29 (Reuters) - Soaring interest rates are providing investors with attractive alternatives to stocks, complicating the picture for equities in an already-vicious year. Register now for FREE unlimited access to Reuters.com RegisterThat calculus has drastically changed as the Fed hikes interest rates to stave off the worst inflation in decades, bolstering yields on everything from Treasuries to money markets. Money market funds took in $30 billion in the latest week, according to Refinitiv Lipper, while equity funds, taxable fixed income funds, and tax-exempt bond funds all had net redemptions. "We are definitely getting a resizing of that now.”Reuters GraphicsOf course, the alternatives to stocks are far from risk free. Still, the robust yields are likely to continue presenting a challenge to stocks, investors said.

☆ Dow plunges and is back in a bear market
▼ + stars: | 2022-09-29 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +2 min

The Dow is now back in bear market territory, more than 20% below the all-time high it set in January. The tech-laden Nasdaq Composite sank 3.4% Thursday and has plummeted even more than the Dow and S&P in 2022. The stock market had a promising start to the quarter, soaring in July. But fears about inflation, rate hikes, rising bond yields and recession returned with a vengeance in August and September. But two popular, widely held bond funds, the Vanguard Total Bond Market Index Fund ETF (BND) and iShares Core U.S.

☆ Market rout has muni bonds looking attractive. How to add them to your portfolio
▼ + stars: | 2022-09-25 | by ( Michelle Fox | ) www.cnbc.com time to read: +7 min

"Uncertainty around how high interest rates will go has driven redemptions in muni bond funds," he explained. Whenever we have a chance to add to muni bonds now, we do so." For instance, you can go to Fidelity Investments' website and access more than 50,000 municipal bonds as new issues or through dealers on the secondary market. Here are five Morningstar five-star rated muni bond funds. "Many closed-end bond funds are trading at prices that are below their net asset value," he said.

☆ Bond sell-off worst since 1949, investor sentiment plummets - BofA
▼ + stars: | 2022-09-23 | by ( ) www.reuters.com time to read: +2 min

A Bank of America logo is pictured in the Manhattan borough of New York City, New York, U.S., January 30, 2019. REUTERS/Carlo AllegriLONDON, Sept 23 (Reuters) - Global government bond losses are on course for the worst year since 1949 and investor sentiment has plummeted to its lowest since the financial crisis, BofA Global Research said in a note on Friday. Register now for FREE unlimited access to Reuters.com RegisterInvestor sentiment is the worst it has been since the 2008 global financial crash, the note said. The bond crash “threatens liquidation of (the) world's most crowded trades” including long dollar and long U.S. tech, BofA wrote. Aggressive rate hikes from major central banks to contain inflation, even as growth slows, has unnerved world markets and sparked a fresh surge in bond yields this week.

☆ Investors dump global bond and equity funds in the week ended Sep.21
▼ + stars: | 2022-09-23 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Dado Ruvic/IllustrationSept 23 (Reuters) - Investors withdrew money from global bond and equity funds in the week ended September 21, with caution creeping in ahead of the U.S. Federal Reserve meeting in which further rate hikes were expected to tame soaring inflation. Investors exited a net $7.32 billion of global bond funds, marking their biggest weekly net selling since Aug. 31, data from Refinitiv Lipper showed. Global short- and medium-term bond funds saw their biggest weekly outflow in 11 weeks, amounting to a net $4.98 billion, while investors also exited a net $3.29 billion in high yield funds. Global bond fund flows in the week ended Sept. 21Meanwhile, global equity funds witnessed disposals worth $1.86 billion in a fifth straight week of net selling. An analysis of 24,559 emerging market funds showed investors sold $2.39 billion worth of equity funds, marking a 10th weekly outflow in a row, while also exiting $2.78 billion worth of bond funds.

☆ Is it time to buy Treasurys? Here's how to allocate your portfolio, according to the pros
▼ + stars: | 2022-09-23 | by ( Weizhen Tan | ) www.cnbc.com time to read: +5 min

The latest threat to stocks now isn't any macro risk — it's rising 2-year Treasury yields, according to some fund managers and strategists. Short-term, relatively risk-free Treasury bonds and funds are back in the spotlight as the yield on the 2-year Treasury continues to surge. Meanwhile, U.S.-listed short-term Treasury ETFs have attracted $7 billion of inflows so far in September — six times the volume of inflows last month, BlackRock said. Here's what analysts say about how to allocate your portfolio right now. This sees investors put 60% of their portfolio in stocks, and 40% bonds.

☆ Wall St Week Ahead Investors wonder when vicious sell-off in U.S. stocks will end
▼ + stars: | 2022-09-23 | by ( David Randall | ) www.reuters.com time to read: +5 min

The S&P 500 is down more than 22% this year. If the S&P 500 closes below the mid-June low in the days ahead, that may prompt another wave of aggressive selling, Stovall said. Goldman Sachs, meanwhile, cut its year-end target for the S&P 500 by 16% to 3,600 points from 4,300 points. "The increased probability of breaking the June S&P 500 price low may be what it takes to invoke even deeper fear. A recession would likely push the S&P 500 to trade between 3,000 and 3,500 in 2023, Jolly said.

☆ Wall St Week Ahead 'Uncharted' sell-off in U.S. stocks has investors wondering when the pain stops
▼ + stars: | 2022-09-23 | by ( David Randall | ) www.reuters.com time to read: +5 min

A specialist trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 22, 2022. REUTERS/Brendan McDermidNEW YORK, Sept 23 (Reuters) - A week of heavy selling has brought U.S. stocks and bonds to fresh bear market lows, with many investors bracing for more pain ahead. Goldman Sachs, meanwhile, cut its year-end target for the S&P 500 by 16% to 3,600 points from 4,300 points. Kevin Gordon, senior investment research manager at Charles Schwab, believes there is more downside ahead because central banks are tightening monetary policy into a global economy that already appears to be weakening. A recession would likely push the S&P 500 to trade between 3,000 and 3,500 in 2023, Jolly said.

☆ What traders are thinking about before the big Fed decision Wednesday afternoon
▼ + stars: | 2022-09-21 | by ( Bob Pisani | ) www.cnbc.com time to read: +2 min

The S & P 500 is about 70 points below where it was at the close of the last Federal Reserve meeting on July 27. The last several Fed meetings have seen the S & P close up on the announcement day, but there's no pattern after that. After the May 4 meeting, the S & P dropped three days in a row, and after the March 16 meeting, a rally continued for several days. Corporate bond funds are also at new lows, including the Vanguard Short-Term Corporate Bond ETF (VCSH) and the iShares Investment Grade Corporate Bond ETF (LQD) . Remarkably, there have not been outflows from these funds, likely because they have strong institutional support and broad bond funds like these tend to be "sticky."

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