Here's why investors should get off the fixed-income sidelines

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Consider this insight as you realign client portfolios for fixed-income realities now.

We looked at the performance of fixed income during periods when the Fed stopped or paused a rate hiking cycle.


Historically, fixed income posts positive returns around the end of a rate hiking cycle, benefiting from higher starting yields and lower interest-rate volatility as uncertainty decreases.


Although we don’t know when the current rate hiking cycle will end or pause, we do know that we’re getting closer. And with the potential for compelling returns, investors may want to consider stepping off the sidelines — sooner rather than later — to take advantage of this opportunity.


Table showing annualized returns for fixed income sectors before and after rate hiking cycles ended; historically, a pause in a rate hiking cycle has meant positive performance across fixed income.


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