Of course, while last week’s economic numbers are a hopeful sign that the economy is finally beginning to accelerate, how the stock and bond markets perform in the second half of the year – and, how the Fed reacts – all depend on this growth trend continuing.
You can read more about my outlook for the second half in in the Mid-Year Update to BlackRock’s 2014 Outlook – The List: What to Know, What to Do as well as BlackRock’s other mid-year outlook pieces: the special mid-year check-in edition of Investment Directions and the BlackRock Investment Institute’s mid-year investment outlook.
Sources: BlackRock, Bloomberg
Russ Koesterich, CFA, is the Chief Investment Strategist for BlackRock and iShares Chief Global Investment Strategist. He is a regular contributor to The Blog and you can find more of his posts here.
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments.