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Fidelity portfolio manager questions fixed-income's Trump tantrum

Published 11/14/2016, 02:48 PM
Fidelity portfolio manager questions fixed-income's Trump tantrum
  • Add Fidelity Ford O'Neil's voice to that of Van Hoisington questioning whether the post-election surge in interest rates makes sense.
  • "It is all based on speculation,” he tells Bloomberg. "The market has glommed on to the good news about growth, but not how challenging it would be to enact such a program or negatives like restrictions on trade.”
  • Ford is among the managers of the Fidelity Total Bond Fund (MUTF:FTBFX).
  • Three things could undermine the recent run-up in yields: the Fed's commitment to just a very gradual boost to short-term rates, the traditional aversion to budget deficits by a Republican Congress, and overseas buyers who may take advantage of lower prices to scoop up Treasurys.
  • ETFs: IEF, PST, IEI, TYO, UST, DTYS, VGIT, TBX, SCHR, ITE, GSY, TYD, DTYL, DFVL, TBZ, DFVS, TYNS, HYDD

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