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Howard Marks expects a lower return from the S&P 500 over the next decade. Here’s what he likes better. - MarketWatch

1. Howard Marks recommends credit investments over S&P 500 for better returns. 2. High-yield bonds yield 7%, while private credit yields 9%-11%. 3. Current 10-year Treasury yields exceed S&P 500 earnings yield. 4. Marks believes today's credit offers healthy returns despite narrow spread. 5. Potential economic unpredictability under Trump's policies could impact yields.

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FAQ

Why Bullish?

Marks' perspective highlights that current yields for TMUBMUSD10Y are attractive compared to equities. Historically, when interest rates rise, yields also tend to rise, thereby positively impacting bond prices.

How important is it?

With the emphasis on rising yields in credit and TMUBMUSD10Y, the likelihood of a positive impact is high, especially for conservative investors seeking stability.

Why Short Term?

While this outlook on yields appears immediate, longer-term trends depend on economic stability and inflation factors.

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