Goldman Sachs The Markets “A great time to buy bonds”
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Nov 1, 2024 Lindsay Rosner, Head of Multi-Sector Investing at Goldman Sachs Asset Management, dives into the bond market's current landscape alongside host Chris Hussey. They discuss how recent rate hikes are reshaping investment opportunities, highlighting the dynamics of credit spreads and economic indicators. Rosner emphasizes the strategic importance of bond selection in portfolios during volatile times, using lighthearted baseball analogies to explain market unpredictability amid upcoming elections. It’s a compelling conversation on navigating financial shifts!
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Rising Bond Yields
- Bond yields have risen despite Fed rate cuts due to several factors.
- These include positive economic data, hawkish Fed speak, and changing election odds.
Tightening Credit Spreads
- Corporate bond spreads have tightened, indicating a positive economic outlook.
- This contrasts with rising government bond yields, suggesting potential complacency.
Bond Buying Opportunity
- The current market conditions present a good opportunity to buy bonds.
- Higher yields combined with the Fed's cutting cycle make bonds an attractive investment.