- US stocks and bonds have largely been selling off this year, with bond yields across the curve stepping higher.
- Richer rates offered to investors to buy government bonds may look somewhat alluring but stocks, for now, are the better bet, two market experts told Insider.
- Inflation is running around 8%, denting returns for bondholders.
Bond yields continued to rise after the
Federal Reserve
hiked interest rates, but there is still a long way to go before bonds offer a more attractive return for investors than stocks, two market experts say.
Investors in the volatile first quarter of 2022 have been whipsawed by an increasingly hawkish Fed as consumer price inflation climbed to a 40-year high and a surge in commodity prices after Russia invaded Ukraine last month.
The mix of events has fed into selloffs in both the US bond and stock markets. The S&P 500 was down more than 5% after being thrown into a correction, while government debt was veering toward its worst yearly performance since 1949, Bank of America said Friday. Treasury yields, which move inversely to bond prices, have sharply marched up. The yield on the 2-year…
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You can read this complete story at: https://markets.Fintech Zoom.com/news/bonds/stocks-vs-bonds-yields-interest-rates-inflation-fed-investing-markets-2022-3
