2022 has been a very challenging year for both bonds and stocks. Bonds, traditionally seen as safe havens, plunged in almost lockstep with stocks this year and suffered their first major bear market in over four decades.
Many experts predict that 2023 could be a better year for bonds as the US economy could fall into a mild recession. Further, with yields at the highest levels since the financial crisis, bonds are now seen as income alternative to stocks.
Even though the Fed plans to keep hiking rates in early 2023, most of its aggressive tightening cycle is over. Inflation is also likely to decline next year, which may benefit fixed income investments.
In the past few weeks, we have seen significant inflows into fixed income ETFs. Many investors have dumped their bond mutual funds and bought similar ETFs for tax-loss harvesting. ETFs are not only generally cheaper than mutual funds, they are also much more tax efficient.
To learn more about the SPDR Bloomberg 3-12 Month T-Bill ETF BILS, the Vanguard Short-Term Treasury ETF VGSH and the iShares 1-5 Year Investment Grade Corporate Bond ETF IGSB, please watch the short video above.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Vanguard ShortTerm Treasury ETF (VGSH): ETF Research Reports
iShares 15 Year Investment Grade Corporate Bond ETF (IGSB): ETF Research Reports
SPDR Bloomberg 312 Month TBill ETF (BILS): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Image and article originally from www.nasdaq.com. Read the original article here.