Bond Investing, Once Seen As A Safe Bet, Has Proven To Be Quite A Challenge

Bond Investing, Guy LebasImage source: YouTube Video Screenshot


Retired fixed income investors will only be able to generate about two-thirds of the income today that they did ten years ago, according to Guy Lebas, chief fixed income strategist at Janney. Lebas says even if investors including riskier bonds and some dividend paying stocks in their portfolios, returns have been diminishing due to persistently low rates. For younger, more aggressive investors in higher risk bonds, long term returns would range between 6 and 12 percent for those with a twenty to thirty year investment horizon. Lebas also said over the next five years, the outlook for inflation is muddled, making it difficult for fixed income investors to hedge their portfolios.

Bond Investing, Once Seen As A Safe Bet, Has Proven To Be Quite A Challenge



About the Author

Sheeraz Raza
Sheeraz is our COO (Chief - Operations), his primary duty is curating and editing of ValueWalk. He is main reason behind the rapid growth of the business. Sheeraz previously ran a taxation firm. He is an expert in technology, he has over 5.5 years of design, development and roll-out experience for SEO and SEM. - Email: sraza(at)valuewalk.com