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Vanguard Tells Investors Bonds Are Attractive After First-Half ‘Horror Show’

  • Fixed-income team sees opportunities in corporates, munis, EM
  • But not all market sectors have fully priced in slower economy
Updated on

Investors should look to bonds for income and as a hedge to equities again after fixed-income assets suffered a “horror show” first half, Vanguard Group Inc. said.

The $7.1 trillion money manager sees the TINA mantra -- there is no alternative to equities -- as a thing of the past with a weakening economy likely validating bonds as a portfolio diversifier, the firm’s fixed-income team led by Sara Devereux wrote in a note on Monday.