Larry Fink, Chairman and CEO of BlackRock, writes that much has been said about an imminent Great Rotation from bonds into stocks as interest rates. However, Fink notes that what he has seen is not so much a rotation OUT of bonds, but a rotation WITHIN bonds. Investors are rotating away from traditional bonds - such as US Treasuries - and into other types of fixed-income securities that offer a better chance of earning in a low-yield environment. So is this the beginning of the Great Rotation into equities? Not necessarily. Although he has been urging investors to increase their exposure to stocks, Fink recognizes that fixed income has a place in the portfolio of many investors provided they don't rely exclusively on mutual funds and ETFs loaded with Treasuries that will decline in price as interest rates rise. (VIEW LINK)
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