Opinions
Jon Nagerian, Co-founder, MarketRebellion.com
iShares Corporate Bond ETF
LQD-N
BUY
Mar 21, 2022
Last week the market was buying downside puts at the 118 strike. We're now at 120. This means people are anticipating higher rates for corporates and individuals. Last week we saw mortgage rates jump and this may erode gains in housing. However, overseas investors own nearly 40% of US stocks--and those people are not re-investing in Europe. This will continue and these folks will be long term. We'll see some rallies and the rest will depend on the news flow.
$120.660
Stock price when the opinion was issued
E.T.F.'s
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
TOP PICK
Although economic conditions have not improved that much and interest rates have fallen, it has proven wonderful for this product. Has benefited from falling yields and slightly tightening credit spreads. Holds everything from BB up. Has an effective duration of about 8 years and an actual maturity of about 12 years so, when interest rates start to rise, start cutting back on this.
E.T.F.'s
BUY
Corporate bonds instead of a lower-rate GIC.
Corporate bonds are quite resilient. LQD is in USD, and a pretty big one. It'll have a little more to do with how the market does.
If you want exposure to the US market, but in CAD, look at DXBU. You'll get capital appreciation plus a nice little dividend along the way.
E.T.F.'s
Advertising