Gabe Diederich Provides Bond Market Insights on MoneyLife Podcast
In a recent appearance on Money Life with Chuck Jaffe, Baird Portfolio Manager Gabe Diederich discussed why today's fixed income environment may continue to present attractive opportunities even amid a modest near term increase in inflation.
Importantly, Diederich noted that while recent data has shown some short term inflation pressure, long term inflation indicators have not moved significantly.
Key Takeaways from the interview:
- Short term inflation pressures have increased modestly
- Long term inflation expectations remain relatively stable
- The Fed may delay policy rate changes pending additional clarity
- Broad bond market fundamentals continue to appear constructive
- Municipal bonds may offer tax efficient income and portfolio stability
Investors should consider the investment objectives, risks, charges and expenses of each fund carefully before investing. This and other information is found in the prospectus and summary prospectus. For a prospectus or summary prospectus, contact Baird directly at 866-442-2473. Please read the prospectus or summary prospectus carefully before investing.
Fixed income is generally considered to be a more conservative investment than stocks, but bonds and other fixed income investments still carry a variety of risk such as interest rate risk, regulatory risk, credit risk, inflation risk, call risk, default risk, political risk, tax policy risk and liquidity risk. In a rising interest rate environment, the value of fixed-income securities generally decline and conversely, in a falling interest rate environment, the value of fixed income securities generally increase.
The commentary provided does not provide a complete analysis of every material fact regarding any market, industry, security or portfolio. Information in this document regarding market or economic trends, or the factors influencing historical or future performance, reflects the opinions of management as of the date of this document. These statements should not be relied upon for any other purpose.