Safe haven investments are hard to find these days, which is why we need them more than ever.
We are faced with risks we haven’t experienced in living memory. A truly global and spreading pandemic, rolling government lockdowns, unprecedented involvement in securities markets by the Federal Reserve and other central banks, and massive stimulus from governments with payments to individuals and businesses.
Normally when corporate and government debt soars to record levels bond markets get nervous, bond prices fall and interest rates rise as investors worry about getting paid back.
Not in today’s environment. The Fed has essentially pledged to keep short-term interest rates near zero and backstop numerous types of loans to prevent businesses from going bust and laying off workers.
That assurance and the “don’t fight the Fed” adage seem to be enough for most fixed-income investors who continue to chase yield, driving bond prices up and interest rates down.
Not this week’s guest. Tom Atteberry is a Portfolio Manager of the flagship FPA New Income fund. Atteberry brings us up to speed on conditions in the bond market, and how they have changed since Covid-19.
Atteberry will also share his One Investment recommendation with us – it might surprise you!
WEALTHTRACK Episode #1704; Originally Broadcast on July 24, 2020
Listen to the audio only version here:
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[tabcontainer] [tabtext]Guest Info[/tabtext] [tabtext]Action Point[/tabtext] [tabtext]Bookshelf[/tabtext] [tabtext]One Investment[/tabtext] [tabtext]Stock Mentions[/tabtext] [tabtext]Video Archive[/tabtext] [tabtext]Web Extra[/tabtext] [/tabcontainer]
THOMAS H. ATTEBERRY
- Portfolio Manager,
- FPA New Income Fund
OWN SOME SAFE HAVEN INVESTMENTS
- VOLATILITY ON THE UPSWING
- MORE FREQUENT MARKET DISLOCATIONS
- GROUP THINK DRIVEN BY ALGORITHMIC TRADING
No Bookshelf titles this week.
CONSIDER BUYING A HOME
- Record low mortgage rates
- Below historic rate of home price appreciation
- Makes long-term sense
No stock mentions in this episode.[/tab]
[tab]from the WEALTHTRACK Archives:
[post-content id=18199 show_title=”true” show_date=”true” show_excerpt=”true” show_image=”true” ]
Award-winning short-term fund manager, Tom Atteberry reflects on some of the longer-term adjustments he is making in his personal and professional life as a result of COVID-19.