Portfolio Advisory Services: Manager Insights
Interest rates are slowly climbing, while the US economy continues to grow. Watch our latest video to get your investment team's take on what's driving rates higher and why bonds can be vital for income and diversification in accounts like yours.
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View last quarter's video (4:51)
Frank Nielsen, Managing Director at Strategic Advisers LLC, provides insight into our view of volatility in today's markets.
Quarterly Market Perspective
Watch this brief video to learn more about last quarter's market events and what your investment team did to manage your account.
How to navigate a changing bond market
After a multi-decade trend of generally falling interest rates, the Fed has made several moves to raise rates. In this uncertain market, investors need to remember why they own bonds.
In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
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