Risk
The Case Against a Bear Market, Per Ned Davis
Stocks have had a rotten start this year, but they won’t get too much worse, the research firm says.
In a triumph for structured finance, these packages of junk loans have up to now confounded any perils.
Outpaced last year, high yield is in solid shape at a time when stocks may come back to earth, the firm argues.
Current projections say there will be two hikes in the latter part of 2022.
The market expects them to start next year. Maybe not, says LPL’s Gillum.
The firm’s Mike Wilson urges the use of a ‘barbell strategy’ to cushion the blow from a downturn—or higher rates.
Many institutions, wary of the asset class’s notorious volatility, keep their exposure low despite raw material price climbs.