Dan Fuss, manager of the $21.2 billion Loomis Sayles Bond Fund, says it may be a good time to consider stocks and move away from bonds.
“We’re in the foothills of a gradual rise in interest rates,” Fuss said in an Investment News report. “Once they start to rise, you’re probably looking at a 20- or 30-year secular trend of rising interest rates.”
If the U.S. employment picture improves, the Federal Reserve could stop buying Treasuries, and raise interest rates.
“Once that happens, you need to get out of the market risk that’s in fixed-income and into the company-specific risk you can find in stocks,” Fuss said in the report.
For more information on the Treasuries market, visit our Treasury bonds category.
Max Chen contributed to this article.