Rising Interest Rates
Interest rates have risen significantly across the US Treasury yield curve YTD. This rise is the result of recent rate hikes by the US Federal Reserve and the increase in real (inflation adjusted) yields due to strong US economic growth. Bond investors rarely see calendar year losses. There have only been 3 in 40+ years for the US Aggregate Index. Additionally, as a result of a culmination of several factors including higher rates, tariffs, corporate profit growth concerns, the global equity markets have experienced a dramatic uptick in volatility and a corresponding fall in the major index averages.