Long-term investors in funds may have to contend with taking losses for quite some time
Ali Masarwah 1 April, 2021 | 4:38AM I used to think the perfect reincarnation would be to be reborn as a president or a pope. Or as a star baseball hitter. But today, I would be reincarnated as the bond market: You can intimidate anyone.
This bon mot of James Carvill, an advisor to the Clinton administration, has more than just a grain of truth to it. If a crisis hits the bond market, even the biggest stock losses fade. Bond crashes often have a systemic component. The core of the Great Financial Crisis was a debt crisis, even if immense equity losses are more enduring in our memories. And when the U.S. Treasury market faltered and liquidity problems emerged amid the Coronavirus Crash in March 2020, it was a much bigger alarm signal for professional investors than the losses suffered by TSX, S&P 500 and co.
What Did the ARK Space ETF Blast-off With? morningstar.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from morningstar.ca Daily Mail and Mail on Sunday newspapers.
Welcome to Morningstar.co.uk!
You have been redirected here from Hemscott.com as we are merging our websites to provide you with a one-stop shop for all your investment research needs.
Get Started: To search for a security, type the name or ticker in the search box at the top of the page and select from the dropdown results.
Registered Hemscott users can log in to Morningstar using the same login details. Similarly, if you are a Hemscott Premium user, you now have a Morningstar Premium account which you can access using the same login details.