Original source: https://www.wsj.com/articles/rush-to-corporate-bonds-reflects-nervous-confidence-11568107803
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Wall Street Journal (09/10/19) Kruger, Daniel
Concern about slower earnings growth hasn’t led to concerns that companies will be not able to repay their debts as a few investors shift money away from shares into corporate bonds. The move highlights tensions between shares’ near-record highs as well as the economic worries behind a dip in bonds which has sent toward record highs. When they are worried about expansion investors have a tendency to find the equilibrium of bonds. Moving from shares to bonds consolidates gains generated during important indexes’ climb. The stability of bonds could help cushion against blows from a slowing economy or the trade struggle with China. Wells Fargo Asset Management urges that customers BB corporate bonds while decreasing holdings in the stock market and increase allocations. Bonds have the capability to post profits and are not likely to handle the sorts of dangers that could lead to default, Jacobsen says…. Read More
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