The turbulence of the last week has shaken investors, but what does it tell us about the markets? Financial Advisor offers an analysis that can prepare you for future market swings. The market’s erratic behavior hasn’t put a damper on consumer sentiment. As Advisor Perspectives illustrates, this widely watched indicator now reveals a post-recession high. In fact, this could be a good time to check into the high yield bond market, according to Tim Gramatovich and Heather Rupp. In our final article, they share their insights as to why these bonds are especially attractive now.
El-Erian: 4 Things To Remember After Wild Market Week– Many investors will remember last week’s market gyrations (and Wednesday’s in particular) as exceptional, exciting, frightening and draining. Here are four noteworthy lessons to be drawn from last week from Mohamed El-Erian.
Consumer Sentiment At Highest Level Since July 2007– The Preliminary University of Michigan Consumer Sentiment for October came in at 86.4, a rise from the September Final of 84.6. This is the highest level since July of 2007.
Why High Yield, Why Now– With default being the primary risk for high yield bonds and bank loan investing, Tim Gramatovich, CFA, CIO and Heather Rupp, CFA, Director of Research for Peritus Asset Management see no systemic default spike on the horizon. As maturities have been largely pushed out to 2017 and beyond, companies have maintained reasonable discipline through this cycle. Moreover, the capital markets remain functional, with CLO issuance setting records and high yield new issues continuing to print. http://www.advisorperspectives.com/commentaries/advisorshares_101714.php
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller