Quick thought on a broken trend line

Greg Dean's picture

They say a picture is worth a thousand words. Well, anyone trying to make sense of this post-election rotation out of secular growth and fixed income and into cyclical and financial stocks can look no further than the 10-year bond in the U.S. While an argument can definitely be made that this has been a big move in a short period of time, I think it’s also worth appreciating the other side which is we are still at levels below 2014! Our advice has been and always will be to never look back to predict the future; understand the risks you are taking when making an investment decision; and don’t let the instrument dictate the risk profile (i.e. bonds = safe / stocks = risky) because that fails to take the price you are paying into account.

 

Disclaimer:
This commentary is provided as a general source of information and should not be considered personal investment advice or an offer or solicitation to buy or sell securities. Every effort has been made to ensure that the material contained in this commentary is accurate at the time of publication. However, CI Investments Inc. cannot guarantee its accuracy or completeness and accepts no responsibility for any loss arising from any use of or reliance on the information contained herein. All charts and illustrations in this guide are for illustrative purposes only; they are not intended to predict or project investment results. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments. Please read the prospectus before investing. This report may contain forward-looking statements about CI funds, future performance, strategies or prospects, and possible future fund action. These statements reflect the portfolio managers’ current beliefs and are based on information currently available to them. Forward-looking statements are not guarantees of future performance. We caution you not to place undue reliance on these statements as a number of factors could cause actual events or results to differ materially from those expressed in any forward-looking statement, including economic, political and market changes and other developments.

Comments

Add new comment

We welcome your comments and questions for the Cambridge team and will respond as soon as possible. Please note that all comments are reviewed for their relevance to the topics discussed in the blog, and that comments may be edited.