HYHG

This down-cycle cannot be fully cured merely through the application of economic stimulus. Rather, the root cause has to be repaired, and that means the disease has to be brought under control.The economic recovery everyone's counting on is not an independent event, unaffected by developments. Rather, it is highly dependent on progress against the disease but also on the continuation of fiscal expenditures in the interim.Today, it seems to me that most assets are offering expected returns that are fair relative to their expected risk, relative to everything else. But the prospective returns on everything are about the lowest they've ever been.In my view, the low interest rates represent the dominant characteristic of the current financial environment, creating the dominant consideration for investors: the lowest prospective returns in history.

Financial advisors have increasingly shifted over to ETFs as a way to diversify their investment portfolios while cutting down exposure to traditional actively managed mutual funds.

On the surface, it appears as though interest rate hedged ETFs need rates to rise to be successful. The ProShares Investment Grade—Intr Rt Hdgd (IGHG B-) proves otherwise.

While investors were turning their capital allocation down to the “low” setting in U.S. equities as the Dow Jones Industrial Average lost as much as 500 points on Monday, fixed-income investments were ...