The Fed has taken unprecedented steps to inject liquidity into the market in response to COVID-19. This action has provided some stability in fixed income, but uncertainty still remains. Several Ivy portfolio managers share their views on navigating the rapidly evolving fixed income landscape.
As the U.S. re-emerges from shelter-in-place orders, Ivy believes we could see
economic activity bounce back in the second half of the year. However, soaring
unemployment and the possibility of a second COVID-19 outbreak are formidable
headwinds to recovery. Our panelists recently discussed the public health,
macroeconomic and market implications for the path forward.
The debate over the merits of active and passive investing has been going on for some time. Ivy believes investors can derive the most long-term benefit through exposure to well-researched actively managed funds.
Market trends show long-term investors generally have been rewarded over time. However, periods of extreme volatility can challenge even the most seasoned investors. Ivy believes having a perspective of the markets and the factors affecting them can be helpful in assessing current opportunities.
Market volatility can be unsettling, but history shows that prices have returned to less volatile patterns over time. That can be good news for long-term investors.
When the market is focused on the short term, we try to take the opposite approach. We look for opportunities to re-position the portfolio into companies where we have high conviction, those names we believe have the long-term ability to withstand market disruptions.