Resilient solutions
Are economic challenges just around the bend? Let us help you steer through the winding road ahead. Set your destination, prepare for some sharp turns, and be ready to recalibrate your portfolios along the way.
Short-termism and market timing is not a winning strategy in the long run.
The key to success in this market environment is to construct portfolios that can succeed no matter where the economy takes us.
Where is the economy heading?
Hopes for a soft landing may be growing, but we continue to believe that the U.S. economy will slip into a mild to moderate recession within the next six months. Simply put, we expect to see two consecutive quarters of negative GDP growth, accompanied by a rise in the unemployment rate.
Stay on top of the latest news and the events that are driving financial markets with our Volatility toolkit.
The right bonds at the right time
GICs have a place in certain portfolios, but is that place to replace bonds? See why we believe rising rates have created a unique opportunity for investors with an eye on the long-term.
How bonds could offer more upside than GICs
Rising rates have renewed interest in GICs, but investors risk missing out on a rare opportunity in bond markets.
Not all bonds are created equal.
Be sure your fixed income approach is flexible enough to go anywhere to find opportunities and mitigate risk.
Even if more uncertainty is expected, brighter days are on the horizon, especially for bonds.
The three phases of fixed income
The opportunity in bonds can be broken down into three phases: the sweet spot, duration, and taking on risk
Bond yields are more attractive than they have been in the past
Yields across most, if not all, fixed-income instruments—regardless of maturity, type, or credit quality—have moved materially higher since the beginning of this year.
Various fixed income asset class yield to worst
Proxies that represent these asset classes: Global Bonds- Bloomberg Global Aggregate Bond Index, Canadian Credit- Bloomberg Canada Aggregate – Credit Index, Canadian Government Bonds- Bloomberg Canada Aggregate – Government Index, US Government- Bloomberg US Treasury Index, US Credit- Bloomberg US Corporate Bond Index, US High Yield- Bloomberg US Corporate High Yield Bond Index. As of August 18, 2023.
Take advantage of the opportunity in fixed income
Manulife Strategic Income Fund
Offers diversification by geography, asset class, and risk with a go-anywhere approach in times of uncertainty
Learn more about the opportunity in fixed income
Why bonds now?
Fixed income has produced negative returns alongside equities, and in some cases even underperformed equities. After the worst start to the year in history, many investors are avoiding the bond markets—we believe that’s a mistake.
Bonds vs GICs
While the safety of a GIC might make sense for investors with an investment time horizon of less than a year, for those investors with a longer one, we tend to caution using GICs as an alternative to bonds in a balanced portfolio.
Looking ahead, the case for fixed income remains
Being a bond investor hasn’t been a pleasant experience for the past few years. We explain why we believe that intermediate fixed income remains well positioned for whatever lies ahead.
Paving the way for a resurgence in bonds
Bonds are finally positioned to potentially provide meaningful returns to investors. Admittedly, the asset class has been a tepid source of income since the Global Financial Crisis, and it hasn’t been a reliable store of value in the post-COVID era. However, when it comes to generating income and preserving capital, the value proposition of bonds has been restored to an extent we haven’t seen in over a decade.
Revisiting global multi-sector fixed income in a postpandemic world
The critical challenge fixed-income investors face today is to find stable returns amid high inflation and rising yields—without taking on excessive volatility or risk. We explore some ways to do so.
The three phases of fixed-income investing
This has been a tough year for both equities and fixed income investors. The three phases of fixed-income investing show the multiple opportunities active fixed-income managers have at their disposal during different economic and market environments.
More Viewpoints on fixed income
Important disclosures
Investing involves risks, including the potential loss of principal. Financial markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. The information provided does not take into account the suitability, investment objectives, financial situation, or particular needs of any specific person. Past performance does not guarantee future results, and you should not rely on it as the basis for making an investment decision.
All overviews and commentary are intended to be general in nature and for current interest. While helpful, these overviews are no substitute for professional tax, investment, or legal advice. Clients and prospects should seek professional advice for their particular situation. Neither Manulife Investment Management nor any of our affiliates or representatives (collectively Manulife Investment Management) is providing tax, investment or legal advice.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts as well as the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
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