A Low Yield Environment
We remain in a historically low yield environment. The combination of low growth and elevated stock and bond prices means balancing income and risk is as challenging as ever.
Still, we see three potential areas of opportunity for investors seeking yield in the current environment.
Balancing Income and Risk
Source: Barclays, Morningstar, Markit iBoxx and S&P as of 4/29/2016. Notes: Volatility is based on annualized standard deviation of daily index total returns over the last three years. The tax-adjusted yield for municipal bonds is based on a 43.4% overall tax rate. For bond indexes the yields displayed are yield to maturity and for the stock indexes it is the dividend yield. indexes displayed are Barclays US Treasury Bond Index, Barclays U.S. Aggregate Bond Index, Markit iBoxx $ Investment Grade Index, S&P AMT-Free Municipal Bond Index and S&P U.S. Preferred Stock. Index returns are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.