Recession Fears Still Looming? Why Bond Mangers From Allianz To Fidelity Still Worry About A Downturn
Portfolio Pulse from Bhavik Nair
Despite easing recession fears, major bond managers from Allianz and Fidelity maintain their forecasts for a downturn and advise hedging bets on risky assets. They believe the Federal Reserve's 10 consecutive rate hikes have already caused damage, and central banks' continued tightening is a concern. Bond ETFs IEF, SHY, and VGSH have experienced losses in the last month.
June 12, 2023 | 1:22 am
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NEGATIVE IMPACT
iShares 7-10 Year Treasury Bond ETF (IEF) lost 2.54% in the last month as bond managers maintain their forecasts for a downturn.
Bond managers from Allianz and Fidelity maintain their forecasts for a downturn, which could negatively impact bond ETFs like IEF. The ETF has already lost 2.54% in the last month, and continued recession concerns may further affect its performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
iShares 1-3 Year Treasury Bond ETF (SHY) shed 1.08% in the last month as bond managers continue to worry about a potential downturn.
As bond managers maintain their forecasts for a downturn, bond ETFs like SHY may continue to be negatively impacted. SHY has already shed 1.08% in the last month, and the ongoing recession concerns may further affect its performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Vanguard Short-Term Treasury Index Fund ETF (VGSH) lost 1.09% in the last month amid bond managers' concerns about a potential downturn.
Bond managers' concerns about a potential downturn may continue to negatively impact bond ETFs like VGSH. The ETF has already lost 1.09% in the last month, and the ongoing recession concerns may further affect its performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80