defensive portfolio (1)

Admin

Gundlach On GDP, Oil, Bonds And More

1291146?profile=RESIZE_320x320It seems not all money managers out there have the warm-n-fuzzies for equities in 2015.  Especially considering the almost two year sell-off in commodities, finally joined by crude oil in dramatic, face ripping action.  In fact, one feels that the rise in interest rates in 2015 will do what is not expected; flatten the yield curve.

If the curve flattens gradually, most traders said it probably means investors believe the Fed will keep future inflation in check with gradual rate hikes. Bond traders hate inflation because it erodes the value of their fixed-income investment.

But if the curve-flattening trend speeds up?

"It's time to trade out of investments whose success depends on a strong economy... for both stocks and corporate bonds," said Anthony Crescenzi, chief bond market strategist at Miller, Tabak & Co., an institutional brokerage.

This means reducing exposure to sectors like retail, transportation and automobiles and moving into defensive picks like health care and consume

Read More, Comment and Share......

We welcome you to post a blog entry, oped or share your daily reading with us as long as it is relevant to the topic of investing and not an attempt to sell a product, proprietary strategy, platform or other service. Please provide links to any research data and if re-posting other articles, give credit where credit is due providing a back link to the original site.

300 words minimum per post. You may also sort by category or search by topic. Don't forget to comment and please "share" via Facebook, Twitter and Google+. If you have any questions, please contact us.

FOLLOW STOCKBUZ

__________________

This is a member-supported site. Please donate when you can to help pay the rent. Thank you!

Stay Informed. Sign up for the FREE StockBuz eNewsletter

________________

Investing involves substantial risk. All content is subject to StockBuz disclaimer.

Create Income With Option Spreads

All content on StockBuz.net is subject to disclaimer and Terms of Service