Navigating the stock market volatility can be a daunting task for investors, but F/m Investments CEO Alex Morris has a suggestion – consider increasing exposure to bonds. Speaking on CNBC’s “ETF Edge,” Morris highlighted the benefits of bonds, especially on the short end of the curve where there is a safe haven to be found.
Attending Miami’s Future Proof conference, Morris emphasized the importance of innovative strategies to mitigate risks for investors. With the economic backdrop and tariff risks in mind, Morris sees buying bonds as a smart move. He believes that if DC policy remains stable, the short end of the curve will be a great place to invest.
Joining Morris at the conference, TCW’s managing director Jeffrey Katz also sees the benefits of fixed income investments. Katz mentioned that bonds are performing as expected in the context of a 60/40 portfolio. He highlighted the TCW Flexible Income ETF, which has been in existence since November 2018.
Looking at the performance of the TCW Flexible Income ETF, FactSet data as of Feb. 28 shows that the fund’s top holdings include U.S. Treasury notes with yields above 4%. The ETF is also highly rated, receiving four stars from Morningstar.
In conclusion, considering the current market conditions and uncertainties, increasing exposure to bonds may be a wise strategy for investors looking to navigate the volatility. With expert insights from industry professionals like Alex Morris and Jeffrey Katz, investors can make informed decisions to protect and grow their portfolios.
