Daily Archives: Sep 15, 2017 at 07:08 am EST

Research Review | 15 September 2017 | Portfolio Management

Asset Allocation in a Low Yield Environment
John Huss (AQR Capital Mgt.), et al.
August 17, 2017
The year 2016 saw bond yields fall to unprecedented low levels in major developed markets, with nominal yields on 10-year German and Japanese government bonds even turning negative. While yields have risen off their lows in 2017, we are still in a very low rate environment. Does this demand exceptional action from investors – even those who usually maintain a strategic allocation to global bonds? We find that it does not, instead it highlights the importance of diversification across many return sources.
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Macro Briefing: 15 September 2017

N. Korea fires second missile over Japan: NY Times
US annual consumer inflation ticks up to 1.9% in August: BLS
US jobless claims drop sharply after previous week’s rise: Bloomberg
Revised US Q3 GDP growth estimate holds steady at 3.2%: Now-casting.com
US Consumer Comfort Index dips for second week: Bloomberg
Ross says N. Korea problem won’t stop US trade reform with China: Politico
US 2-year Treasury yield rises to highest since July: MarketWatch