MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

GOVERNMENT BONDS HAVE GIVEN US SO MUCH Do they have anything left to give? GMO Quarterly Letter

davfordavfor
edited August 2020 in Other Investing
Much to think about here. Includes some investment ideas....
Today’s low bond yields, which are without precedent in U.S. history, create several challenges for investors. Three crucial ones for investors to contemplate are: how can we replace the income that bonds used to supply; how can we adapt portfolios for the loss of depression protection that comes from bond yields having little or no room to fall; and how can we protect our portfolios from the risk of rising inflation and rising interest rates? Each of these challenges is unique and requires a different playbook than what we have used over the last 30 years. They will also require more dynamic allocation between the opportunity sets. We will take you through each of these issues and propose portfolio solutions to help adapt portfolios to today’s anemic interest rate environment.
https://gmo.com/americas/research-library/2q-2020-gmo-quarterly-letter/
Sign In or Register to comment.