A Word of Caution on Fixed Income in the Current Market Environment
March 24, 2020 |
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The views and opinions expressed throughout this presentation are those of the author as of March 26, 2020. The opinions and outlooks may change over time with changing market conditions or other relevant variables.
This material is provided for informational purposes only and does not in any sense constitute a solicitation or offer for the purchase or sale of a specific security or other investment options, nor does it constitute investment advice for any person.
The information presented in this report is based on data obtained from third party sources. Although it is believed to be accurate, no representation or warranty is made as to its accuracy or completeness.
As with all investments, there are associated inherent risks including loss of principal. Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Sector investments concentrate in a particular industry, and the investments’ performance could depend heavily on the performance of that industry and be more volatile than the performance of less concentrated investment options and the market as a whole. Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company stocks. Foreign markets, particularly emerging markets, can be more volatile than U.S. markets due to increased political, regulatory, social or economic uncertainties. Fixed Income investments have exposure to credit, interest rate, market, and inflation risk. Diversification does not ensure a profit or guarantee against a loss.
Past performance is no guarantee of future results. ETF performance shown is gross of fees and expenses. An investment cannot be made directly in an index. Individual securities mentioned may be held in client accounts. Index performance is gross.
Down capture ratio is a statistical measure of an investment’s overall performance in down-markets. It is used to evaluate how well an investment performed relative to an index (or another investment) during periods when that index has dropped. The ratio is calculated by dividing the investment’s returns by the returns of the index (or other investment) during the down-market and multiplying that factor by 100.
All BCM strategies invest solely in long-only ETFs.