Without Fear of Market T-shirt Design

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Ahad
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Joined: Mon Jul 04, 2022 6:29 am

Without Fear of Market T-shirt Design

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The time series has entered the fourth quarter, the global economy has gradually recovered from the haze of the epidemic, coupled with the vigorous support of fiscal and monetary policies, global funds have continued to flow back into the high-yield bond market. A 15-year high. However, the U.S. presidential election is approaching, the global epidemic cycle is prolonged, and the political rivalry between the United States and China is re-emerging, and the market outlook is unclear. Are high-yield bonds suitable for investors to deploy? AllianceBernstein said that global uncertainties still exist, and short-term price fluctuations are unavoidable, and high-yield bonds have the advantages of higher income potential, lower volatility than the stock market, and accumulated bond interest yields, which have become the current low interest rate and high volatility. Under the environment, it is a popular place for capital to be favored by the market. Investors should extend the investment time and include high-yield bonds as one of the core allocations according to their own risk attributes, so as to respond to sudden changes in market conditions and explore long-term income opportunities. First, high-yield bonds have the advantage of reward potential but less volatility than equities . Global high-yield bonds offer better return potential than stocks but relatively low volatility, for example, the Bloomberg Barclays Global High-Yield Bond Index (USD Safe Haven) total return of 410% from 1999 to September 2020 During the same period,

the total return rate of the MSCI World Index with interest was 239%. Looking further at the past 3, 5 or 20 years, the volatility of the global high-yield bond index is only slightly more than half that of the MSCI World Index. Therefore, in the long run, high-yield bonds have better risk-reward attributes, have high linkage with stocks, and can moderately participate in market investment opportunities, T-Shirt Design
but their volatility is relatively low. Second, high-yield bonds have the advantage of accumulating bond yields . Compared with other assets, high-yield bonds also have the essence of bond assets, that is, if the company does not default, there will be continuous debt interest income. Since the long-term total return of high-yield bonds mainly comes from coupon income, rather than capital gains alone, as long as the bond issuer does not default, regardless of whether it faces a bull market or a bear market, the bond income is regularly distributed in the form of coupons. Therefore, when the market turmoil subsides , often with the opportunity to quickly return to normal. This is one of the reasons why high-yield bonds are suitable as long-term investment allocations.

Take AllianceBernstein-Global High-Yield Bond Fund as an example (this fund mainly invests in non-investment grade high-risk bonds and the source of dividend distribution may be the principal) as an example. It was established in 1997 and has gone through the Asian financial turmoil and the global financial tsunami. , the European debt crisis, the collapse of energy prices and the Sino-US trade war and other events, with a comprehensive high-yield strategy (Multi-sector income), deploying various global high-yield bonds, investment-grade corporate bonds, strong and local currency emerging markets Bonds, mortgage income securities and other securities are highly dispersed and dynamically allocated to reduce default risks and help investors achieve long-term investment goals. As of August 31, 2020, the Fund has a presence in more than 70 countries and more than 2,300 bonds, providing global investors with a variety of income opportunities. AllianceBernstein has been investing in the fixed income market since 1971. Through the rich investment experience and debt selection ability of the investment team, it selects high-quality investment targets for investors. Although the short-term price will still be affected by market fluctuations, the long-term accumulated investment value It should be able to respond to temporary market shock
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