Low beta stocks perform well during volatile markets, which we are likely to see in the existing landscape of Fed (talk of) tightening and heightened geopolitical instability. The latter geopolitical instability could feature on investors’ radar in 2022, which could see capital flows into safe-haven assets. Safehaven assets include precious metals, low beta stocks, and …
Treasury Bonds Safe-Haven Assets
Could treasury bonds safe-haven assets be a honeypot in 2022? Looking at the financial landscape up close, the answer seems obviously not. The 7-10 Year Treasury Bond ETF is down 5.5% over the year with a current dividend yield of 1.1%. In short, with the core inflation fire burning at 7%, bond investors have been …
Treasury Yields
Rising US 10 year treasury yields are creating volatility in stocks. As Darren Winters points out, the last time US Treasury 10 Year yields climbed so steeply was during the beginning of the 2020 pandemic lockdowns. So the three-month US Treasury 10-year note chart, courtesy of MarketWatch, shows the steeping of the yield curve, particularly …