Research & Analysis

04/07/2022

All major Morningstar fixed-income fund categories fell in 2022's first quarter as interest rates soared. The Federal Reserve officially raised short-term interest rates by 25 basis points in March for the first time since December 2018, after hinting it would do so for several months. The Bloomberg Aggregate Bond Index, a proxy for the U.S. bond market, fell 6.1%--its worst quarter in almost 40 years--while the average intermediate core bond Morningstar Category fund lost slightly less: 5.9%.

https://www.morningstar.com/articles/1086298/interest-rates-soared-in-the-first-quarter-crushing-fixed-income-returns

 

04/04/2022

After the worst bond market rout in decades Vanguard reminds us why it is not time to bail on bonds.

https://advisors.vanguard.com/insights/article/risingratesdontnegatebenefitsofbonds

 

03/31/2022

As the 2 and 10 Year Treasury spreads close in on inversion Schwab's Chief Investment Stratagist Liz Ann Sonders gives some additional context to this reliable predictor of recessions. 

https://www.schwab.com/resource-center/insights/content/recession-blues-unfounded-fear

 

12/31/2021

After a long period of outperformance in Growth vs Value and Domestic vs International/Emerging Markets Morningstar reminds us why it is important to rebalance to reduce portfolio risk.

https://www.morningstar.com/articles/1070702/you-probably-need-to-rebalance