Investors seem myopically concerned about equity market volatility, but don’t seem very concerned at all regarding the growing risks in fixed-income and seem oblivious to the bonds’ already multi-year underperformance. As we told the reporter, bear markets don’t typically occur when there is too much good news and investors are concerned the good news can’t continue. Bear markets are usually fueled by investors disregarding deteriorating fundamentals and rationalizing underperformance. That doesn’t seem true of the equity market, but rather seems to depict well today’s fixed-income markets.
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This article was written by Richard Bernstein, Chief Executive and Chief Investment Officer of Richard Bernstein Advisors, a participant in the ETF Strategist Channel.
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