Global rates are starting to rise, making short-term bond exposure a necessity with ETFs like the Invesco Global Short Term High Yield Bond ETF (PGHY).
“Investors are trying to navigate through a treacherous strait in the market, with bonds generating near-zero income yields on one side and stocks with increasing volatility on the other side,” Adam Strauss writes in Forbes. “With good reasons to assume that the Federal Reserve will continue to buy Treasury bonds at an aggressive pace to cap bond yields for years to come, it is time to start thinking about alternatives to owning traditional bonds.”
Strauss also noted that while “bonds historically have paid a higher level of income than stocks, and retirees are more often than not dependent on generating investment income to fund their living expenses.”