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Higher Bond Yields Can Be Fundamental to a Recession Investing Playbook
Investors who have already endured one of the most challenging years ever must now confront the question of how to invest when the U.S. and other major economies may be headed toward a recession. While financial market volatility is likely to persist, we believe the case for bonds is stronger than it has been in years, bolstered by significantly higher starting yields and bonds’ strong track record during economic downturns. Bond yields have risen sharply in 2022 as the U.S. Federal Reserve and other central banks have hiked interest rates in an effort to tame inflation. Historically, starting yields have had a ... (full story)