The main theme of the market had been yield hunting for quite some time until this summer. The periphery and junk yields had dropped to levels never seen before and fixed income holders made handsome returns with low volatility on their investments. (Near the end of this trend, there was some eyebrow lifting bond issues to warn the observers) But it had started changing and presumably the trend will continue as the growth gains some momentum. I think the market will be more selective (both equity and fixed income wise) than it was in the last 2-3 years and as the dividend yields can compete with core bond yields (and there is small upside potential in fixed income without QE) more people will recognize it and shift.


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