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Easy Money Already Gone?

Matthew Allgood |

 

 

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When interest rates drop, existing bonds become more valuable because they pay a higher rate than new bonds. Recently, the expectation of rate cuts boosted the performance of the Bloomberg U.S. Aggregate Bond Index (AGG), benefiting many bond portfolios. 

 

Given this movement in bonds that has already occurred, the best gains from Fed rate cuts may already have occurred. We focus on diversifying asset class exposure to ensure consistent returns, even when bond markets are uncertain.

 

 

Easy Money Already Gone?

 

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Source: Bloomberg, Regan Capital, Redwood. Data as of 9/20/2024. Date Range from 10/10/2023 - 9/19/2024.

 

 

Regards,

Allgood Financial

Disclosure: This piece is for informational purposes only and contains opinions of Redwood that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no representation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss. Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above. Diversification of asset class is not a guarantee against loss.

 

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