On the bond side of the equation, it’s a little trickier. Some experts said that higher long-term yields could be in the cards given the possibility of any fiscal stimulus—and tariffs—fueling resurgent
inflationary pressures.
“There is a bias to the upside for yields but we’re comfortable extending duration,” says Andrew Krei, co-chief investment officer with Crescent Grove Advisors.
Still, he adds that “the idea that there could be whiplash in the bond market from significant fiscal stimulus is a real possibility.” That might impact Treasuries more than other parts of the bond market
though. As such, Krei says he likes both investment-grade and high-yield corporate bonds. “More stimulus and a stronger economy is supportive of credit,” he says.
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