CALL: (888) 717-5200 or (949) 861-4747 |  Account View: LOGIN

Market Update: 05-23-22

DAWN OF A NEW ERA FOR BONDS

 

Core bond investors have experienced the worst start to the year ever. However tough this year has been so far though (and it has been tough), the potential for future returns has improved meaningfully, in our view. Starting yields tend to be a good predictor of future returns and have become more attractive in a number of markets recently. With yields on most fixed income markets moving sharply higher, now could be a good time to revisit fixed income markets.

REASONS TO OWN CORE BONDS?

In our earnings season preview, we expected a high single-digit increase in S&P 500 Index earnings for the quarter, and that is what we got. The consensus estimate coming into reporting season was calling for a 4.7% earnings gain, and now it looks like 10% is possible with more than 40 index constituents still left to report results [Figure 1].

Our Team

Susan Jerris

Susan
Jerris

LPL Registered Principal 
Email Susan
CA Insurance License #0662706
Broker Check
 
Anthony Roble

Anthony
Roble

LPL Registered Administrative Assistant
Email Tony
CA Insurance License #0K61923
Broker Check
 
Diana Esperon

Diana
Esperon

Administrative Assistant
Email Diana