Capital IdeasTM
Investment insights from Capital Group
債券
Keiyo Hanamura
After three years of COVID, roller-coaster economies, inflation and central banks’ frantic fight against an uncertain future, it appears we may finally return to the world we used to know. The “new normal” – where rates are low, volatility subdued, and investors are willing to take on more risk – could yet return. But can it be so simple? After all the upheaval, are we really returning to the pre-COVID era?
We could be entering a new regime, where inflation is expected to be higher and central banks may be more reluctant to ease. As a result, fixed income may continue to see the return of yields, even in the safest assets. With a higher level of yields and a more balanced Fed/ healthy economic cycle, the largest bond allocation might finally fulfil its traditional roles, of producing income and offering diversification from equities. This is the “normal” investment director Keiyo Hanamura believes we will eventually arrive at. But, in the short to medium term, we are in the midst of a transition period as we allow rate hikes to work through the system.
Past results are not predictive of results in future periods. It is not possible to invest directly in an index, which is unmanaged. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.
Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.