BETTER DAYS AHEAD FOR BONDS
John Lynch Chief Investment Strategist, LPL Financial | Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial
2019 was a baffling year for bonds. The 10-year U.S. Treasury yield fell to a three-year low, and the yield curve flashed ominous signals about the economic outlook. We’ve seen some improvement in long-term yields since the September low, but we don’t expect much more upside in 2020. However, bonds can still play an important role in helping to diversify portfolios where appropriate.
THE YEAR IN REVIEW
One of our biggest challenges in 2019 was explaining the bond market’s baffling signals. Many firms— including ours—kicked off 2019 with expectations of rising rates after the Federal Reserve’s (Fed) December 2018 rate hike...